Danny Coyle
In this two part series we’re taking a look at some of the underlying reasons behind the minimums set by suppliers. In part one we discussed third-party fabric production and how this drives up your supplier’s MOQs. In part two we look at the way your supplier’s staffing problems can affect MOQs.
Staffing Issues
Another common factor considered by suppliers when setting MOQs is juggling staff numbers and responsibilities. If a 3,000 piece MOQ is based on staffing rather than fabric, what your supplier is really saying is that he needs 3,000 pieces worth of work to make your order worth his while. If this is your supplier’s main consideration, your solution needs to help him solve his recruitment problems.
Does this supplier offer other products you are interested in? Try ordering 500 pieces of six different products. If staffing is the main motivator, the total size of the order is what matters more to your supplier than the number of pieces per item.
- Be patient – offer to wait longer
A supplier who produces good garments is probably already busy – there are no workers sitting around waiting to do small orders. Offering to wait longer for your order to be completed may do the trick if both you and the supplier are willing to contract the work out or to hire temporary workers. It is easier for your supplier to fill a few temporary positions lasting two months than find twenty people willing to work full time for only two weeks.
This list is not exhaustive – the reason for your supplier’s MOQ may not be listed above. Our suppliers have been more than willing to discuss the reasons behind their MOQ. Asking them about how the MOQs are calculated has helped us navigate through to successful solutions many times.
Be careful promising that you will place big orders after your first trial order. Every factory has heard this story many times. It is not new. Be upfront with your plans, but don’t be surprised if they don’t take your future promise of big orders very seriously.
Keep in mind that your supplier is probably already offering an MOQ much lower than their ideal in order to cater to new buyers. In our case, a normal order is at least 10,000pcs. This is the order size that keeps our business running smoothly. In order to attract new business we offer a smaller MOQ of 1,000pcs, something we can do in the short term but which will not sustain us long term. This gives us a chance to prove our value to customers who are not willing to take a 10,000pc risk on their first time out.
Trying new things is a way to build your business. If you find an interesting product, don’t let a high MOQ turn you off the idea. Think about how help your supplier help you, be flexible and, most of all, be creative. You may well find a way to make your suppliers’ MOQs work for you.
What about you? What have your experience with MOQs been in China? Have you found other ways to get around problematic MOQs?
