How to Read a Fabric Price Sheet With Moq

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The Minimum Social club Quantity (MOQ) requirement sets the minimum number of units that you can buy from a supplier. For example, an MOQ of 500 pcs means that you cannot order anything less than 500 units of a sure product. The MOQ requirement tin therefore be an obstacle for small-scale buyers, especially every bit information technology tends to be set on a per-product basis rather than on a per order basis.

That said, in that location are ways to reduce the MOQ requirements, while also allowing the supplier to keep a fair turn a profit margin. This, and much more, is explained in this guide roofing everything importers must know about MOQ requirements in Mainland china.

Overview

• MOQ Examples
• What is the Minimum Guild Quantity (MOQ)?
• How to ostend the MOQ requirement
• Minimum Order Value (MOV)
• MOQ and COVID-19
• Why the MOQ exist
• Different types of MOQs
• How to reduce the MOQ
• MOQ in Cathay VS Vietnam & Republic of india
• Issues when ownership below the MOQ
• MOQ reduction strategies

MOQ Examples

This overview lists typical MOQ requirements for clothing, watches, electronics, kitchen products, and children's products.

Wear

• 500 – 1000 pcs per gild
• 500 – 1000 pcs per color (custom colors)
• 100 – 300 pcs per color (standard colors)
• 100 – 250 pcs per size

Material Fabrics

• 3000 meters (custom colors)
• 500 – 1000 meters per color (standard color)

Watches

• 500 pcs per order
• 500 pcs per model (including case size)
• 100 – 200 pcs per color (punch and instance)

Electronics

• 500 – chiliad pcs per social club
• 500 pcs per production
• 500 per pcs color

Kitchen Products

• 500 – 1000 pcs per order
• 500 pcs per production/material
• 500 per pcs color

Toys & Children's Products

• 500 – 1000 pcs per order
• 500 pcs per production/material
• 500 per pcs color

What is the Minimum Order Quantity (MOQ)?

The MOQ requirement is the minimum number of units you demand to order from a supplier. It can be set up per order, per product, per cloth, or per color. For example, if a supplier sets their MOQ at 500 pcs, and so you must buy at least 500 pcs before they can accept your order.

How to confirm the MOQ requirement

The MOQ is often specified on the supplier's Alibaba page or website. You tin as well contact them directly to ask for their MOQ. Keep in mind that the MOQ is not always a fixed number. Instead, the MOQ is a variable that depends on the following factors:

• Eeargness to accept your gild
• Total order volume
• Materials
• Number of colors
• Number of other variations (eastward.g. sizes)
• Profit margin

Minimum Society Value (MOV)

A Minimum Guild Value is the lowest value of goods a supplier is willing to sell on a per order or product ground. If the Minimum Society Value is fix at US$5000, and so they volition not accept orders below this figure. That said, manufacturers about exclusively fix a minimum quantity rather than a minimum value.

MOQ and COVID-19

COVID-nineteen has, at least in our experience, not had a notable impact on the minimum order quantity requirements among suppliers in China. If anything the overall tendency is towards more than flexible product and somewhat lower MOQs.

We have also noted that some suppliers take been more eager to take new orders, even if the buyer cannot reach their standard MOQ. That said, this is likely to be part of a wider trend towards relatively lower MOQ requirements rather than straight related to the pandemic.

Information technology besides depends largely on the industry. For instance, the medical supplies rush in early 2020 resulted in some manufacturers raising their MOQ requirements significantly, while besides enervating 100% payment upfront.

Low-turn a profit margins require larger volumes

Nearly Chinese manufacturers tend to operate on razor-thin profit margins. Often every bit low every bit three to iv%. Depression-profit margins crave the supplier to produce a large number of products in order to break fifty-fifty.

It's as well unwise to try to negotiate the MOQ requirement and the unit cost at the aforementioned fourth dimension. On the contrary, a reduced MOQ requirement may require a higher unit price for the supplier to recoup for an overall smaller profit on your order. Likewise, a unit toll cutting may issue in an MOQ increase.

It's unrealistic to wait whatsoever supplier to offer both a cost and MOQ reduction at the same time.

Your suppliers MOQ reflects the MOQ set by their materials subcontractors

The manufacturer is not always to blame for high Minimum social club quantity requirements. Chinese suppliers tend to keep a minimum stock of materials and components.  Every bit such, they must buy materials and parts from subcontractors, on an order to guild footing. This, in plow, requires that the factory tin can satisfy the MOQ of the subcontractor.

This also explains why different items and unlike materials (or even colors of the same textile) have unlike MOQs. With some effort, information technology is possible to work out how the MOQ can be lowered, by identifying which materials and components the supplier keeps in stock, or tin purchase in lower minimum order volumes.

At that place are, nonetheless, certain limitations to this approach. For example, materials that are compliant with Achieve, or other chemical regulations, must be procured in a larger volume.

As product compliance is not optional, going around the MOQ requirement using 'standardized materials' may not e'er piece of work.

Chinese suppliers normally don't proceed products in stock

Information technology would be really easy for a factory to sell depression volumes if they only kept set up-made units in stock. However, they rarely practice. At least not when it comes to products that are 'export ready'.

You can continue Taobao.com and notice tens of thousands of suppliers, all with ready-made goods. That said, off-shelf products in China are manufactured for the domestic market place. That is a trouble, as such products are, for obvious reasons, not manufactured in compliance with overseas (i.east., US or Eu) production labeling requirements and prophylactic standards.

For example, all products in the United States must deport a country of origin label (i.e., Made in Mainland china), in English. While some off-shelf products may be compliant, you volition need to look long and hard for them.

So, let's get back to the question. Off-shelf goods can be purchased in small volumes, the problem is but that you cannot buy such products – and as a event, y'all are back to "make to society" which ways y'all must encounter the supplier's MOQ.

Manufacturers often accept more than just ane MOQ requirement

Many factories present a single MOQ, for all products. However, that is rarely the instance.

Let's accept the textiles manufacture for case. Apparel manufacturers MOQ oft looks like this:

• Per unit: 1000 pcs
• Per standard textile: 500 pcs
• Per custom fabric: thou pcs
• Per standard color: 250 pcs
• Per custom color (i.e., RAL or Pantone): 500 pcs
• Per size: 250 pcs

Equally y'all tin can encounter to a higher place, standard materials and colors (i.e., those with higher turnover) are sold with a lower MOQ. The more y'all customize a product, the higher the minimum order quantity requirement goes.

You tin can make this work in your favor if yous can manage to get this information from your supplier. In the example above, you must buy thou pcs. If y'all buy a T-shirt in a standard material, in a standard color – you can get 4 different products (SKUs).

On the other manus, a custom material would only get yous one SKU, as the MOQ requirement is the same as for the "per lodge" MOQ.

This explains why suppliers tend to have college MOQ requirements for products, while prints and other modifications tin be offered with lower MOQs. The same often goes for cutting and other procedures that tin be managed by the supplier.

Present your MOQ bid to the supplier

It'south often more than effective to send your own 'MOQ bid' to your suppliers, rather than trying to work out the supplier's theoretical MOQ. That style yous give the supplier the opportunity to take your entire social club book into consideration.

It'southward common that suppliers offer significantly reduced MOQs, at least on a per SKU or color basis, after seeing an order listing from a prospective buyer. MOQ discussions can otherwise be highly theoretical given all the factors at play when a supplier calculates the MOQ requirement.

Case

• Item A, 200 pcs
• Item B, 200 pcs
• Item C, 300 pcs
• Particular D, 150 pcs

Work with your supplier to reduce the MOQ

You can negotiate a lower Minimum order quantity requirement from your supplier. Still, as mentioned in this commodity, the supplier frequently has very limited room for reducing the MOQ.

In fact, they may not be able to offer you a lower MOQ than they already practice. At least not without taking a loss, or being forced to themselves take a bigger risk by buying more than materials and components that are actually used for your club.

Some suppliers may consider offering buyers a lower MOQ in return for a college price. But, working out the supplier's quantity requirement construction is often far more efficient.

By doing and so, you lot tin design your production, and use materials and parts, that the supplier is able to procure in lower volumes.

Case Study A: Bathroom Carpets

A few years ago, a customer arrived in Shanghai to visit manufacturers of bathroom carpets. This client owned ii stores in Europe. Big enough to match the supplier'due south minimum order quantity, but not for more than i or two products.

That's a problem because stocking up 1000 pcs of blue rugs, and another thou pcs of the dark-green ones, is non viable for a small business organization operating 2 shops.

Hence, the client'southward objective was to discover out how they could create additional SKUs (i.e., more than colors and shapes) while satisfying the manufacturer'south minimum club quantity.

Every bit said, this can only be done if you find out the supplier's MOQ structure. Luckily, we did, and the result was as follows:

• Per Material: 1000 pcs
• Per Colour: 250 pcs
• Per Size: 50 pcs

What nosotros found hither was that the MOQ was controlled by a subcontractor. The textiles manufacturer. However, they had more flexibility when it came to colour. Hence, we solved one major issue.

But, an even bigger deal was the discovery of the supplier'due south owns MOQ per cutting, which was ready at 50 pcs. That makes a lot of sense, as the supplier can control the MOQ per size past itself. Cutting is a elementary procedure, that doesn't require a huge quantity, per variation.

Hence, the client was able to buy rugs in four dissimilar colors – each in 5 different shapes. That's up to twenty SKUs.

Case Study B: Quartz Watches

Lookout manufacturers by and large set a MOQ of 500 pcs per case design. However, they tend to be more flexible when it comes to the minimum lodge quantity per punch and case color.

Hither's an overview:

• Picket Case: 500 pcs per pattern
• Dial: 100 pcs per color
• Example: 100 pcs

While you can only get one watch instance pattern, assuming you buy 500 pcs, you tin still create 5 unlike variations (due east.g. different models) of the aforementioned lookout model. This is also something that has been done with slap-up success by many 'mono brands', which are specialized in a single production category.

Chinese suppliers are mostly flexible when it comes to MOQ requirements

Unlike manufacturers in many other countries, I've found that suppliers in China tend to be more willing to reduce the MOQ in order to accommodate smaller buyers.

This exercise is not very common in Vietnam, for example, where suppliers accept higher MOQ requirements that they are less willing to negotiate. Factories in Vietnam also have less of a reason to go along MOQs low every bit a big number of brands have shifted orders from China to Vietnam as a consequence of the trade war.

The MOQ requirement also tends to fluctuate depending on the season, and the number of orders the supplier is currently working on.

A supplier with filled social club books is less likely to accept lower volumes compared to a factory that's starving for new business organization.

Why you lot shouldn't e'er select the supplier offer the lowest MOQ

It's non uncommon to find suppliers on Alibaba.com and other supplier directories offering MOQs as low as 10 to xx pcs. Keep in mind that many suppliers offer beneath average MOQs are not actual manufacturers, just trading companies or wholesalers.

Such products are oftentimes off-shelf and are by and large manufactured for the domestic market in People's republic of china. Equally a result, 'depression MOQ' products are not made to comply with US, EU, or Australian production rubber standards and labeling requirements.

MOQ in Red china VS Vietnam and Bharat

A MOQ of 500 to one thousand pcs per order or product may sound like a lot. That said, compared to many suppliers in Republic of india or Southeast Asia, the 'China MOQ' is non that high.

We've helped many customers finding alternative suppliers in Bharat and Vietnam in the terminal few years. I of the largest obstacles is the MOQ requirements set past suppliers in these countries.

While it depends on the product and industry, it's non uncommon that factories in Bharat and Vietnam set their MOQ in the thousands of units, rather than the hundreds. Some suppliers are not even willing to offer a quotation if they deem the volume likewise low.

Indeed, such suppliers also exist in Communist china, but the MOQ requirements are more often than not college in Bharat and Southeast Asia.

Example

• China MOQ: 500 pcs
• Vietnam MOQ: one thousand pcs
• India MOQ: k pcs

Buying 'below the MOQ' can result in quality issues

A few months ago we worked with a European wearing apparel company to uncover why they faced ongoing quality issues. After a discussion with their supplier in Guangdong, I quickly understood that the cadre of the problem was related to the fact that they ordered a limited number of units per style.

As they could non match the regular fabric MOQ, the supplier could only procure 'in stock' fabrics from local wholesalers, on an order to order footing.

Sometimes, the regular fabric was out of stock, which in turn resulted in quality issues related to the plumbing equipment and washing of their vesture designs.

The solution was to purchase fabric rolls for more than one club at a time, as this enabled them to attain the MOQ requirement and therefore ensure that the same fabric was used on each gild.

6 Strategies to Lower Your Suppliers MOQ Requirement

Sometimes, reducing MOQ requirements is a matter of negotiation. That said, there are many other methods that are more than effective when information technology comes to reducing the number of units y'all need to purchase.

In almost cases, the cardinal is to understand the MOQ structure and work with the supplier to find means allowing them to produce a lower number of units – while still making the bargain profitable for both parties.

How tin can I streamline the usage of materials and components?

Equally said, the suppliers MOQ requirement is frequently a straight reflection of the MOQ of its subcontractors. Chinese supplier purchase materials (east.g. fabrics) and components (eastward.g. zippers) from various subcontractors, and non but i or two.

Equally a event, a production made of many different materials may force the supplier, and in the extension, you lot, to satisfy the MOQ requirement of many subcontractors. This can in turn results in an escalation of the MOQ requirement, especially if you accept highly specific requirements.

What if you re-use the very same material on a larger number of unlike products, instead of simply ane? Should this not permit the supplier to satisfy the subcontractors MOQ requirement, while yous tin still savor a wider product assortment? Assuming the manufacturer is somewhat flexible, this is oftentimes a solution for pocket-sized buyers to lower the MOQ requirement.

Shall I limit product customization?

A product can be customized to a varying degree. Clearly, a custom logo on a pre-existing manufactory design is less complex to accomplish, every bit compared to a device built entirely with custom-designed components. Uncomplicated forms of product customization enable the supplier to all the same use standard (i.eastward. high turnover) components, while highly customized components require the supplier to step out of its 'normal purchasing routines' and subcontract an entirely new pattern.

Such OEM components may not be compatible with the manufacturer's primary product line, therefore forcing the buyer to meet the entire MOQ alone. This is rarely a problem when basing a production on 'standardized components', as these can be divided on a larger number of buyers. Let'south take a wristwatch every bit an example to demonstrate what this might await like in the existent world:

• Case MOQ – Factory standard: 500 pcs / OEM: 800 pcs
• Hands – Factory standard: 500 pcs / OEM: 5,000 pcs
• Punch – Mill standard: 500 pcs / OEM: four,000 pcs
• Clock face – Manufacturing plant standard: 500 pcs / OEM: 4,500 pcs
• Movement – Factory standard: 500 pcs / Not-Manufacturing plant standard: 2000 pcs

As demonstrated in the list to a higher place, forcing the supplier to subcontract an OEM component may result in a vast increase of the MOQ requirement, which in turn is, also this time, largely a reflection of its subcontractors MOQ requirement.

The lesson here is that yous should limit the 'degree' of product customization, and base on the product on 'manufacturing plant standard' components – to the extent possible.

Does information technology assist if I offer to pay a higher cost?

The MOQ requirement is often, simply not always, a straight reflection of the subcontractors MOQ requirements. Many Chinese manufacturers maintain a stock of 'high turnover' materials and components. Therefore, they tin, at to the lowest degree if they are willing, manufacture a smaller quantity of products.

But considering their low-profit margins, information technology'southward often not worthwhile the fourth dimension, effort and take chances involved. Offering to pay a higher cost, for example, 10 to 20%, may give the supplier an incentive to accept a small volume order.

Can I negotiate a lower MOQ?

This selection shall never be relied upon, simply it rarely hurts to give it a try. Some manufacturers are rather forgiving to minor buyers and may accept to lower their MOQ after some negotiation. That said, such offers tend to be limited to an initial test order – and don't expect the supplier to cutting down on the MOQ more than fifteen – 25%.

Tin I buy from smaller manufacturers?

Modest manufacturers may be slightly more flexible, than larger ones, not to mention more than hungry for business, even if your order value is not counted in the millions of dollars. But, do you lot remember what I said almost not selecting a supplier due to a low MOQ requirement?

This is, of course, also applicable when selecting a supplier based on its size, which in turn is a selection based on the MOQ requirement. Selecting a disorganized manufacturer, or one unable to show previous compliance with applicable regulations is never a wise decision.

Can I tell the manufacturer that it'south my company policy to club a minor pilot batch?

Aye, many suppliers are willing to accept a lower MOQ for an initial examination production run. Continue in mind that they'll well-nigh probable expect you comply with their MOQ requirement for all subsequent orders in the futurity.

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Source: https://www.chinaimportal.com/blog/minimum-order-quantity-moq-why-it-s-required-by-chinese-suppliers/

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