What's the most important? No Minimum Order Required.
by top1accessory Admin on Mar 07, 2021
What's the most important? No Minimum Order Required.
What does “no minimums” mean to the manufacturer?
In fact, for the factory:
1). There is no requirement for a minimum order quantity, which means that one piece must be produced, which means an increase in cost and a decrease in revenue.
Those who have never worked in a factory may not know the different meanings of one piece and tens of millions of pieces. First of all, there is no minimum number of orders for the factory's customers, but for the factory's suppliers, they will require a minimum number of orders. In this way, it is possible that a color that will never be used again is only purchased for an order of 100 pieces, but the customer of the factory will never understand the truth behind it and cannot understand why a full customization of a piece is more expensive than a large quantity. Secondly, if the quantity is small, there is no way to streamline the production line operation, and the labor cost is magnified. The social production time for a unit product may be ten times that of a large-volume order, because no matter if you are a hat or 10,000 hats, the process is the same, and the process will not be saved because the quantity is small. Every step cannot be less to guarantee the hat. The quality of itself. Finally, if the factory is burdened with freight, it will also increase the cost of the factory. A very simple example, a hat is packed in a box with the smallest size. The volume is about 2.5 kilograms. It costs more than 200 yuan to ship with FEDEX, and the cost of shipping 1,000 hats with Fedex is less than 20 yuan. If in order to save costs, it can be shipped by sea, then the transportation cost of a single hat will be lower.
2). There is no requirement for the minimum order quantity, which means the infinite extension of the production cycle.
First of all, as we said before, the production process cannot be changed regardless of whether the quantity is large or small. As a customer, you do not want the factory to take one step less for your product, such as one less QC or missing accessories. . All commodity production has a socially necessary labor time to create, and its price is closely related to it. As a factory, of course, it is more willing to produce large orders in assembly line, and the social production time of a single hat can be reduced and the cost will be much lower.
Secondly, all factory production equipment has a fixed and specific quantity. If all orders are very small orders, and each machine needs to be operated by human hands, then the number of machines and workers will increase exponentially, which is something the factory cannot afford. Even if the factory is willing to accept all small-quantity orders, the delivery period will be extended. If a small-quantity order reaches a certain limit, all orders will be extended indefinitely, and the client will not be able to bear it.
3). There are also certain benefits for the factory. The factory takes small orders, then no matter how big or small orders will be given to the factory to produce. There is no minimum order limit is actually a maximum benefit to customers, helping customers to develop customers and develop the market, in turn, the customer will grow back to the factory a large number of orders will be given to the factory, so that the factory will not always do small orders can avoid the situation we described above. Of course, the actual situation is that many factories willing to accept small orders have said that they are almost always producing a small number of orders, giving customers the impression that they are doing small orders in the heart of the factory is difficult to receive large orders. This is a cycle, as a factory we hope that this phenomenon can be avoided and willing to work with customers to do more and stronger.
What does “no minimums” mean to distributor or brands?
As a customer, there is no minimum order requirement, which has the following advantages:
1). At the stage of developing suppliers, you can start your business with the smallest amount of money. No one dares to make a guarantee and find a factory online and dare to say that their quality must meet your requirements, even if there are already many comments on the Internet saying their benefits, because there are thousands of people, you have your own requirements, others have The requirements of others and the requirements of others do not mean that they meet your standards. Compared with orders of tens of thousands or tens of thousands or the minimum number of orders of one thousand and two thousand, factories without minimum order requirements can let you buy one to test your ideas, test your design, test the market, and shoot products. Photos, product videos, etc., without spending too much money, can spend most of the money on finding customers and on advertising. The most important thing is that you can spend 1,000 dollars to test whether the supplier you are looking for meets your standards, your tastes, and your requirements, why spend thousands and tens of thousands of dollars to develop a supplier? For the same money, you can find more high-quality factories. The main thing for your branding company is to find the factory that can match your factory instead of the size of the factory, nor the factories that have produced which brands. For you The most important thing is the coordination of time, the coordination of materials, the coordination of craftsmanship, and the coordination of communication.
2). In the stage of market development, you can do your business with the smallest inventory. Everyone likes large-volume orders, but on-demand production is the most economical way, because it can greatly reduce storage costs. In the market development stage, what you need to do is to spend a lot of money on the market, not on the product itself. If you can find a factory that does not require a minimum MOQ, that is your gospel, because it can produce orders according to customer requirements without inventory or too high inventory. It can speed up the turnover of funds, improve the efficiency of the use of funds, and obtain maximum profits.
3). In the mature stage of the market, you can take all orders, big and small. The cooperating factory can accept your "no minimum order" requirement. Such a large number of orders are naturally welcome, so that you can fly in the market. You can accept orders regardless of size. The most important thing is to follow the order. The quality is guaranteed, and the delivery time is enough.
I think the main benefit is to find the most reliable factory to match your business at the lowest cost at the stage of supplier development.
All the above, we can see that "no minimum order" is a great benefit. The fastest and most economical way for you to do business is to find a factory that does not require a minimum number of orders, and then work with it to develop your samples for promotion, and then increase marketing investment to transfer this benefit to your customers to achieve the overall benefit optimization.