When you start buying from the Pakistani supplier, you will encounter that Pakistan has the best production capacity, manufactures high-quality goods, and charges pretty affordable prices. Especially, when you buy from a supplier, there is one common term, “Minimum Order Quantity (MOQ)”. It is not the fixed law; it reflects a supplier’s cost, risk, and operational convenience.
In this blog, we will discuss how to negotiate MOQ after submitting the Rate Lelo form, and now it’s high time to turn the multiple offers into a purchase. We have provided you with everything you need to know in detail, as well as additional information. Here we will uncover the real steps to follow after Rate Lelo to lower or smartly optimize MOQ without compromising quality and timeline.
What is MOQ and Why Does the Supplier Set It
Minimum Order quantity is the smallest quantity a supplier is willing to sell or purchase, which significantly helps in making deals. Although every seller has set their own minimum order quantity for some practical reasons:
- Setup & Changeover Costs: The production process needs a proper setup, testing, and adjustment. So, if the batch is too small, the factory will lose money.
- Component MOQ: labels, packaging, or subparts also come with MOQ.
- Capacity Utilization: Mostly, factories prefer the long and steady run compared to short ones, which slows the efficiency.
- Working Capital: Suppliers generally buy materials and pay workers before you pay them, so they need to order large quantities to justify the cost.
What To Do Right After the Rate Lelo Quote Arrives
If you think that by smartly planning the MOQ you can save more, then yes, but you have to plan it well. At Alahdeen B2B Marketplace, after receiving the Rate Lelo things to do first are:
Put All Quote in Comparison
Once the Rate Lelo quote arrives, make a comparison table and mention every quote side by side. This helps in avoiding the confusion and lets you see which supplier is truly offering the best deal.
So, make a comparison chart while mentioning the price, MOQ, delivery time, and payment terms, and judge them to consider them equally.
Choose the Best 3 Suppliers
You might be thinking that price is the main factor. But the thing is to always keep in check how fast the supplier replies, explain to them all the things clearly, and show flexibility with MOQ or customization. This is another way to save your time because you’ll only negotiate with the best options.
Calculate the Real Cost
Although the price they add is not the real cost, so add the:
- Shipping
- Packaging
- Defect or damage the piece
Share Credibility Pack
This set of details proves that you are a serious buyer. It helps in building trust and makes the supplier convinced to reduce the MOQ.
Your pack should include:
- Sales plan for the upcoming 60-90 days.
- Your recording method
- Payment plan
- Quality check rules you follow
Ways To Lower or Smarter Your Minimum Order Quantity (MOQ)
At Alahdeen, most of the people misunderstood that the Rate Lelo prices are not fixed. You can negotiate the MOQ with the manufacturer to an extent where your benefit increases and the other party does not face a loss.
1. Pay a Higher Price
This will only work if you can pay high. If you are buying more units, then yoy will probably get a deal with a lower price per unit. And if you are buying a small unit, then you are paying their offered price. Perhaps by paying more, you can make a good relationship that is still not worthless.
2. Use the Installment Plan
Another way is to ask them to do it in an installment plan. Undoubtedly, not all suppliers agree to offer a low price, but they will put every possible effort to make it happen. This helps you offset your costs and keep you financially stable while you are waiting for your product to sell.
3. Make a Quick Deal
This is the sure tactic. It might seem a little bit rushed, but ultimately help in your future businesses. For instance, if they have a higher required unit that they sell for a minimum order, you can still likely get the lesser units if you promise to have a long-term business with the seller.
4. Combine Your Order
Ordering various products from the seller helps you lower the MOQ price. Doing so gives you a discount because you’re showing good loyalty to the business.
5. Make Long-Term Contact
Tell your supplier about your plan. You have to confirm with your supplier that a long-term commitment is going to be extensively beneficial for them.
Case Study
In procurement, the Minimum Order Quantity often presents a significant hurdle, particularly with those distributors introducing new products or managing cash flow. This case study describes how a strategic or negotiation approach was used.
The distributor needed 900 products, but the company said the minimum order should be 1,200. So, the distributor made a smart deal; they asked to pay 20% upfront for material and commit to three future orders instead of asking for a discount at the first step.
This approach convinced the company to accept a smaller 900-unit order right away. This will further help in offering better prices and a permanently lower minimum order quantity for their business cycles going forward.
Using Rate Lelo to Structure A Better MOQ Outcome
The Alahdeen’s Rate Lelo form will also help you in negotiating a much better MOQ. Consider a few things before sending a quote just simply mention you want a mixed SKU MOQ phased delivery option and a step-down price plan for repeat orders.
After shortlisting the supplier, send them a message back while mentioning that you want a smaller first batch to test quality and logistics. And afterward, confirm the timing and mention your follow-up order if the first style meets standards. Make sure to keep everything written inside the chat: the MOQ, price, lead time, delivery plan and QC rules replacement, artwork specs, and payment steps to have a clean record and smoother negotiation.
Find the Right Supplier or Vendor
Last but not least, the one effective way is to find the right platform or the right supplier for your purchase model. Just like there are thousands of suppliers on a single platform, but only a few of them are offering the product that you are looking for.
Furthermore, partnering with the smaller manufacturer helps you achieve a low MOQ price. On the other hand, those with a prominent profile tend to have higher quantities required for minimum orders.
Conclusion
While summing up, negotiation might seem difficult at first step but you can’t believe that by doing so, you can get a desired MOQ. Well, the tips mentioned in this blog will help you build a good relationship, let your performance unlock better pricing, and lower MOQ in every subsequent cycle.