WHAT IS MOQ?
MOQ is an acronym that stands for MINIMUM ORDER QUANTITY. It is the least amount of goods Turkey Errand boy is willing to buy.
MOQ can have a broad explanation but we would discuss it as it is used in our business.
For a manufacturer, it is the least number of unit per product the supplier is willing to sell. Do you remember the word series from our last article? Click here
In that article, a series can be said to be the MOQ for that gown set by the manufacturer. If you haven’t read the series article, quickly click on the link above.
Let’s proceed. Different manufacturers can set different MOQ depending on the least number of unit they would have to sell to make a profit and break even.
Having an MOQ means the lowest number you can buy is set but, you can definitely buy more than the set MOQ.
Turkey Errand Boy can place MOQ on items, it is the least number of item he can buy per product or the minimum number of products you can order for him to purchase and ship to you. This ensures the company doesn’t run at a loss. It also helps you, as ridiculously low number of item can incur huge shipping fee. After you calculate your landing cost you may just realize you made very little or no profit.
Story Time
Remember Paul the owner of xlassic collections, he wants to purchase the above sneaker and the manufacturer has a set MOQ of one series which is sizes 40,41,42,43, and 44 while Turkey errand boy has a set MOQ of 10 items for an entire purchase.
Paul can buy one series from the manufacturer and if Turkey errand boy is making other purchases for him which makes up the MOQ then Paul gets his purchase shipped after purchase. But Paul is buying only the sneakers above as his entire purchase. What does it mean for Paul? To meet up with the companies (Turkey errand boy’s MOQ) Paul has to buy 2 series from the manufacturer which comes up to 10 pairs of sneakers.
Paul is happy, the manufacturer is happy and the purchasing company is happy. This all round happiness flows down to the customer who will definitely be happy as Turkey errand boy sources only the best quality products.
