How Do Small Businesses Negotiate Lower MOQ with Chinese Suppliers?

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Most Chinese suppliers I contact want me to order thousands of units right away, but I can't afford that kind of inventory risk. Is it possible to negotiate a lower minimum order quantity, and what should I say or offer to make the supplier take me seriously?

Answers (1)

    1. I have been doing procurement for 8 years and am too familiar with the matter of grinding MOQ in China factories. I want to say something practical:

      Don't just talk about quantity, talk about "potential" first

      Suppliers are not afraid of your small quantity and that you are a one-time customer. Don't directly ask "Can you lower your MOQ?" in the first email. Make the other party think that you are a long-term customer.

      I usually say this: "The first order is a trial order, but if the quality is OK later, our annual purchase volume of similar products is about X thousand pieces. "

      This sentence is a hundred times more effective than directly asking for a reduction in MOQ. The supplier calculates the annual account in mind, not the amount of money for the first order.

      Introduce a few small methods.

      1. In fact, the MOQ has dropped from 5000 to 1000, and the unit price has increased by 15%-20%. The supplier has actually not lost money, and the fixed costs have still been amortized. Under normal circumstances, I would ask directly: "Measuring small people can accept an increase in the unit price. How much increase do you think is reasonable? "

      2. The biggest problem with small orders is that factories feel that "it is troublesome to make money." You said:"Trial order is 100% prepaid," and the other party's attitude immediately changed.

      3. Ask if there are any cancelled orders, showroom samples, and inventory stocks from other customers. There is basically no MOQ for this kind of thing. Last year, I just got a batch and started with 300 pieces.

      4. Ask the factory,"Are there any other customers who are also buying this model and can we gather a cabinet?" I once competed with two other sellers for a cabinet, and the MOQ was directly reduced from 3000 to 800.

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