What the MOQ?

I am writing this post from the side of isle G in hall 9.2 of the Canton fair.

With over 4000 suppliers attending, to say that my feet are sore and my head is spinning is an understatement. If you have attended Canton Fair you will know what I mean. If you have not then I hope this post and some future posts might give you some idea of what is involved.

I would like to share with you today my most FAQ. What is your MOQ (minimum order quantity). On approaching a stall, this is my first question to which I regularly receive answers from 1000 per colour per style to 2000 per colour per style. Straight away it is understood that these factories supply Europe and USA.

It does not take long with some key questions and all of a sudden this same supplier is offering quantities of 200-500 pieces per style 2 colour ways.

Why did they drop so quickly? It is about understanding what the limiting factor for each garment style is. One of your most important tools in negotiation is understanding what is the key component that cost the manufacturer that they cannot reduce.

For example, if you are talking to a swim wear manufacturer it will be foam cup production. If you are talking to a woven shirt and dress manufacturer it will be fabric production. If you are talking to an underwear supplier it will be the size of their production run.

You can easily reduce the quantity size down by

Offering to use current styles and add onto production
Using stock fabric from the market
Supplying the factory with completed pattern, sample and specification (one factory dropped from 1000 to 50 with this offer)
Offering higher cost per item for a smaller quantity to be produced
Understanding what a manufacturer needs to produce product with a profit for everyone will give you the quantity you need and the quality you desired.

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