5 steps to get a lower MOQ from the Alibaba supplier

By justchinait
 / 
July 31, 2020
 / 

Did you encounter such a situation when you negotiated with the supplier, the supplier’s MOQ exceeded your plan? How to solve it?

The MOQ is usually negotiable, but the premise is to meet the supplier’s profit margin. The following 5 steps will help you negotiate with suppliers to get a better MOQ.

1. Communicate honestly with suppliers

communicate sincerely with suppliers
Sincere communication

Some solutions may teach you to pretend to be an experienced trader to negotiate. This method is useless, suppliers can easily determine whether you are a veteran or a novice because they deal with many different buyers every day. On the other hand, many Chinese suppliers were willing to reduce the MOQ to a certain extent when they first cooperated. Of course, the MOQ should also be within its cost controllable range.

In order for them to think you are a reliable partner, you can tell them that this is your first order for this type of product and you want to place a small order to test the market. The MOQ is about 30-45% of the original MOQ, but the quotation may eventually be 10%-30% higher than the previous unit price. Check if it’s acceptable for you. If the supplier is unwilling to reduce the MOQ, try the next strategy.

2. Consider from the perspective of the supplier

Many people won’t consider issues from the other side’s point of view, but the business is always based on a win-win cooperation, you shouldn’t allow suppliers to unilaterally compromise. You can express from the other side’s perspective and let the supplier think you can understand his difficulties. You should make it clear to the supplier that they won’t suffer losses due to your business. Tell them that you want to establish a long-term business relationship with them, and communicate your business model and situation with them. For example, your marketing plan, advertising budget, etc. A good salesman will judge whether you are a potential customer. Be sincere and not blindly show your professionalism.

3. Put some pressure on suppliers

Bring some pressure on the supplier
factoryPressure

After the above two steps, one thing needs to be told: Although they are the most suitable supplier for you, you can also choose other suppliers. If they cannot meet your MOQ, you will abandon them and find another partner.

4. Place an order in no hurry

Place an order on no hurry
No hurry

Give the supplier 2-3 days to consider whether the MOQ can be lowered, and wait patiently for the supplier’s response without urging them.

5. Negotiate other costs

If the supplier still thinks it is not worthwhile for them, you can communicate with them to understand their difficulties and see if these difficulties can be resolved.

balance buyer's target price and seller's acceptable price.
Balanced intersets

The key to negotiation is the balance between the price you can accept and the price of the supplier. If you still cannot reach an agreement in this way, try other methods. For example, first cooperate with a smaller supplier. After your business develops steadily, you can find another medium and large supplier for cooperation. Rome was not built in a day.

Don’t end the negotiation unhappily, because you may negotiate with them again in the future.

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