In order to boost profit margins, you need to balance how much product you buy from your supplier with how much you sell to your consumer. It sounds simple, but there are a lot of variables that can affect this delicate process. So how can you make sure that you are buying the right amount of product, from the right supplier, for the lowest cost without the risk of over-exposure?
As we discussed in 12 Ways To Rev Up Profit Margins, one way to boost your margins is to take into account your supplier’s MOQ. An MOQ, or Minimum Order Quantity, is the smallest quantity of a particular item or SKU you can order from a supplier at one time.
What’s the purpose of an MOQ? And how can you “mind your MOQs” when searching for the most direct source and grow your profits?