How should brands set minimum order quantities (MOQs) when selling to wholesalers?
MOQs should be structured to work commercially for both the brand and the wholesaler. Set a threshold below which orders become unprofitable for you—if a wholesaler orders just two cases, your margin gets squeezed rapidly.
**Pricing strategy with MOQ tiers:** - Set a baseline MOQ (e.g. pallet or half-pallet quantities) that makes financial sense - For orders below the MOQ, charge an additional fee to cover your costs and reduced margin - This approach protects profitability while still allowing smaller orders when the customer pays a premium
**Delivery considerations:** - Delivered pricing is standard, though some regional or friendly wholesalers may occasionally collect stock themselves (rare bonus)
**Key caveat:** Members stressed that MOQs must balance your commercial needs against wholesaler requirements—set them too high and you lose sales; too low and you erode margins on small orders.
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