Do you often find manufacturers that apply benchmarks with minimum purchases on the goods they offer? Did you know that this is one of the tricks they use a lot to attract consumers who are clients or business people? This condition has the advantage of being mutually beneficial for both parties. But what is the true meaning of MOQ in business? Check out the full explanation below.
A deeper understanding of the meaning of MOQ in business.
MOQ or Minimum Order Quantity is the amount in purchasing goods that a manufacturer has set. The simple picture is that when a producer offers goods in one transaction, he will set a certain amount but at a relatively cheaper price than buying them in units.
The application of this MOQ helps cover production costs that producers incur to make the number of orders from consumers. In addition, the MOQ also functions to keep the value of an item stable because there is no need to store large quantities of inventory.
The benefits of implementing an MOQ in business.
Stock Runs Out Fast
The producers set the MOQ because they also have to earn income from their production activities. If sales are in large quantities at once, the stock of goods will run out quickly. That way, manufacturers can start another new production.
Through this MOQ, consumers who act as sales agents will receive a high price difference from the market price. In addition, they can negotiate directly with producers to obtain goods with high quality and low prices.
Total Controlled Stock
Another benefit is to take precautions so that no goods experience difficulty selling and control sales stocks that dare to buy these goods directly from the factory. If the stock is stored for too long and just piles up, then the value of the profit will gradually decrease. For example, a product for groceries has an expiration date and will be more difficult to sell later. So the risk that occurs is to sell it at a lower price than the retail price.
Good inventory that runs out quickly helps maintain cash flow in a healthy condition and has a high chance of getting a higher profit. If sales are smooth, the seller may reorder from the manufacturer and obtain stock with a new model/type.
Get affordable MOQ with our services.
Are you interested in creating instant drink products and are looking for manufacturing services with an affordable MOQ? Calm! We are here to help you. You can entrust it to Putra Farma Yogyakarta as an experienced and highly credible instant beverage product contract manufacturer since 2000. Our location is in Indonesia, precisely in Yogyakarta. In addition, we also accept orders to be shipped worldwide.
With our services, you can make your own branded instant beverage products without must to think about high capital to build your factory. We provide various kinds of instant drink products such as beauty drinks, diet drinks, herbal drinks, supplement drinks, women’s health drinks, dairy products, and café drinks.
For product legality issues, you don’t have to worry! Because we guarantee that our products use the best quality raw materials that are legally certified and have food testing from the laboratory. We also carry out production with GMP, and HACCP standards, as well as double checking.
Get many benefits by working with us, including product consulting; free to create a brand name; special product formulations; free product samples; flexible MoUs; free product packaging design; free to choose the form of product packaging; free revision of product samples until suitable; long shelf life; cost price negotiation; product legality registration; etc.
The most complete and trusted beverage manufacturer with a process that is easy, fast, safe, realible, and affordable. For more information, please contact CV. Putra Farma Yogyakarta.
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