How Can We Handle Less Than MOQ Problems? 2018-01-05T15:33:12+00:00

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How Can We Handle Less Than MOQ Problems?

    In my previous post What Makes a MOQ? 
    I’ve said when it comes to international business negotiation, the MOQ part is the only one that can compete with pricing part. I also listed four reasons why there is MOQ.

    MOQ really matters and you’ve probably seen many less than MOQ issues. But how can we handle less than MOQ problems?

    Speaking of that, assume that you have off-shelf items, but you still set these item’s MOQ 1000 pcs, don’t you think it is a little weird?

    What is off-shelf item? It is products that you produce everyday, you create your own design, use your own model, your own packaging. You don’t have to make any change for anyone.

    So you definitely would make and hold inventory  for these off-shelf items. Then why you still scare your customers away using your MOQ?
    MOQ shouldn’t be applied to off-shelf items.

    Here I would like to mention the buzzword “EOQ”. I believe most of you know MOQ, but seldom get the meaning of EOQ.

    EOQ stands for Economic Order Quantity.  According to Wikipedia, In inventory management, economic order quantity (EOQ) is the order quantity that minimizes the total holding costs and ordering costs.

    EOQ is different from MOQ. It is Economic Order Quantity.

    You could tell your customers they could buy only 100 pcs products, but the freight of the 100 pcs is the same as the freight of the MOQ 1000 pcs. It is obvious that they would choose the right one.

    See, try turn your MOQ saying to EOQ saying and present to your customers what’s the better choice to save their  costs. Isn’t it more persuasive and friendly to close the potential deals?

    Learn to put yourself into your customers shoes. Be more considerate and let them know you really care them as a customer or even a business partner.

    In facing with less than MOQ problems:

    If the product is your regular product, tell your customer it’s one of your regular products and you can add their order to produce together if they really can’t hit your MOQ.

      By saying these, your cutsomers definitely can feel your kindness and sincerity to cooperate.
    You help them this way, they will get back to you what you want in the near further.

    For products you don’y usually produce, you can tell your customers you will try your best and you will check with your production right away to see if there happen to have the same products producing or maybe you can wait some time with same model order.

    To sum up,

    1.Encourage your customers to purchase more, use the EOQ saying try to save customers’ cost by decreasing the freight per piece.

    2.Explain the reason why you have MOQ on some products and your customers will understand it.

    3.Don’t set MOQ for those regular products if you can. Or try to wait the same items to produce together to help lower your customers’ costs.

    Let your customers feel you are the one who can help them to solve problems and provide good quality and consistent products and service in the long run.

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