Tips For Making The Most Out of Minimum Order Quantities (MOQs)

by | Jul 20, 2022 | NATASHA | 0 comments

Spending money seems par for the course when you are getting your business up and running. But when you’re not sure if your new design will be popular, ordering just a few pieces seems to make the most sense.

However, when you go to a clothing manufacturer, you are hit with a minimum order quantity (MOQ), which can look daunting. But, before you panic, here are some tips to help you overcome this obstacle.

1. COMMUNICATE WELL

Communication is key to building any relationship with a new clothing manufacturer. MOQs vary between factories so establishing what the lowest possible requirements for your order is a great starting point. If the MOQs are too high for your brand on initial enquiry, just ask whether they can accommodate lower.

In some cases, they may be able to but in others, they may decline. However, don’t be afraid to ask as clothing producers want to help bring your products to life. So some wiggle room could be agreed.

Learning to communicate well with all levels of your supply and demand chain is a valuable business lesson for any new or established company.

2. NEGOTIATE A GRADUAL PRODUCTION RUN

Thinking about it in business terms, the supplier may be reluctant to offer a deal for a lower MOQ if they believe this will be a once-only order. However, if you can show them how you plan to grow the orders and develop a long-standing relationship with them, increasing the amount you order every month, they may be more open to compromise and negotiation.

3. MODIFY THE DESIGN

Each part of your product factors in the MOQ calculation by the manufacturer. They have to source each component. The fabric, buttons, belts and other factors will face an MOQ with their suppliers as well. So, it is worth checking if one part, in particular, is causing the sticking point.

For example, if you have specified a specific button and they can only purchase 3000 of these, it could be this small detail holding up the negotiation. In this case, it is worth considering changing your design slightly. Ask if they can show you alternative buttons with smaller MOQ’s or offer them some suggestions for a replacement.

4. RESEARCH SUPPLIERS AND GET QUOTES

Similar to any industry, researching clothing producers is the best way to get the best prices and options for your next clothing line. This ensures to have all the information you need to make an appropriate decision. Plus, you’ll have greater insight on potential areas of compromise or adaption of the final product.

5. THE BOTTOM LINE

MOQ’s are part of running a supply business. All factories have overheads and staffing costs to meet and therefore have to calculate for achieving this. However, it is often not set in stone, and a new customer is always worth trying to accommodate. You are both in the same boat, trying to keep your businesses afloat, so remember it isn’t personal, and business negotiation can go a long way to resolving any issues.