Get Familiar with "MOQ" | Types and Benefits
The MOQ is a term many people are still unfamiliar with, so we’ll be looking at everything you need to know about MOQ and its importance in this blog.
Let’s get right into it.
What is MOQ?
MOQ stands for “Minimum Order Quantity” and refers to the smallest number of products or units that suppliers want to produce at a time. Suppliers set the MOQs to cover their production cost and make sure they’ll make a profit from every production run.
MOQs may differ according to the supplier. Some suppliers have large MOQs that range up to 100,000 units while others have as little as 100 units.
Why is MOQ important?
MOQs are crucial for suppliers as it determines which businesses they are willing to do business with. Setting MOQs helps suppliers easily communicate with businesses the number of units it takes for them to work together.
Certain businesses work on a small level and only produce a small number of units. These businesses need to find suppliers that are happy to work with low MOQ requirements. On the other hand, some businesses operate on a bigger scale and require hundreds of thousands of units. These businesses need to find a supplier that meets their requirements and can produce the number of units they need.
How to meet MOQ?
It can be pretty overwhelming to meet MOQs if you’re starting a new business. As you’re just starting, you only need a small number of units produced and won’t meet many manufacturers’ MOQ requirements. If you’re currently in this situation, the best option is to let the manufacturers know about the number of units you need and how much you can afford. If you can’t meet the supplier’s MOQ requirements and they’re also unable to reduce the number of units, it’s best to look for other suppliers with MOQs that fit your requirement.
MOQ at Bali Swim
At Bali Swim, we want to help business owners and start-ups succeed. Therefore, we offer the lowest MOQ in the industry for you who’s starting out a new swim line. Our MOQs are available and ready to go starting from MOQ of 100 pcs and 250 pcs through manual order that you can mix between collections to reach these numbers.
For example, to reach our 100 pcs MOQ, you can order 40 tops. 40 bottoms and 20 dresses. Also, you can request a combination of 100 tops, 100 bottoms and 50 dresses to reach our 250 pcs MOQ.
For example, you can order 65 active tops, 65 active bottoms, 60 resort tops and 60 yoga bottoms.
We offer MOQ per style/color/print in 20 pcs, including blue tops, peach tops, and printed tops. Also, our MOQ per size is 3 pcs, including XS, S, M and L.
There’s a reason why MOQs are put in place. Therefore, you must abide by them and make fair negotiations with suppliers when necessary. If on any occasion, you can’t meet the MOQ but want to work with that particular manufacturer as their value seems to align with your brand, then try negotiating the numbers. It may be possible for some manufacturers to lower their MOQ but at a higher product cost which you can calculate later on.
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