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MOQ vs Unit Price: When “More” Costs Less

  • Writer: Sal Orozco
    Sal Orozco
  • Sep 11
  • 2 min read

“Inventory is fundamentally evil.” — Tim Cook.

Unit price up $1.50… BUT MOQ down 1,000?

You’re staring at two quotes.

Slack pings.

Finance asks, “Why are we paying more per unit?”

Breathe. Run the play.


The Math (example)

  • Option A: $6.00 × 3,000 = $18,000

  • Option B: $7.50 × 2,000 = $15,000

    Savings now: $3,000 cash not trapped in boxes.


Reality Check

Unit price is a headline.

Profit lives in cash flow, risk, and speed.


Unit Price vs MOQ (your map)

Importing isn’t “quote → ship → victory confetti.”

It’s choices under uncertainty.

Your levers: MOQ, lead time, cash, risk.

Rule #1: Cash flow > cents. Every. Single. Time.


Top 5 Risk Factors (and quick fixes)

1) Demand Unknowns

High MOQ + unproven SKU = roulette.

Fix: Start small. Set a reorder trigger (e.g., reorder at 40–50% sell-through in 10–14 days).


2) Step Costs You Missed

Cheaper unit price can hide higher freight, duty, storage, financing.

Fix: Calculate landed cost at each quote (EXW/FOB/DDP). Compare $/unit all-in, not sticker.


3) Lead Time Reality

Can you actually reorder fast?

Fix: Confirm production + ship lead times in writing. Pre-book capacity or split into two smaller POs.


4) Revision/Defect Risk

If the first run has issues, a big MOQ = big pain.

Fix: Run smaller batch, tighten QA/QC early, iterate on packaging or spec before scaling.


5) Working Capital & Space

Inventory carrying cost quietly eats margin.

Fix: Model storage + capital cost (even a rough %/month). Favor faster turns over penny wins.


Danger Zone: The Sticker-Price Trap

Chasing the lowest unit price with a jumbo MOQ =

markdowns, storage fees, slow pivots, stale cash.


How to de-risk:

  • Use a landed-cost sheet (price + freight + duty + packaging + QA/QC + storage ÷ units).

  • Add a clearance penalty line (expected markdowns/returns).

  • If the big-MOQ plan only “wins” before these, it doesn’t win.


Safe Zone: Cash-Flow Sourcing

Smaller batches → faster reads, easier pivots.

Reorder the winner. Kill or tweak the loser. Control beats “cheap.”


Toolkit:

  • Rolling PO (place PO2 when PO1 hits 40–60% sold).

  • Partial shipments to smooth cash.

  • Supplier SLA on replies (<24h) & on-time (≥95%).

  • QA/QC gates to avoid scaling mistakes.


When to Choose MOQ ↓ / Price ↑

  • New launch / unknown demand

  • Seasonal or trend-driven

  • Tight cash or testing variants

  • You’ve got reliable reorders (lead time you trust)


Pocket Timeline (copy/paste)

  • Day -7: Get two quotes. Build landed-cost comparison.

  • Day 0: Place smaller PO. Lock spec pack + QA checklist.

  • Day 10–14: Read sell-through, returns, reviews.

  • Day 12–16: If signals are good, place PO2 (don’t wait to sell out).

  • Day 25–35: Receive PO2; adjust mix (drop weak colors, fix packaging).

  • Ongoing: Repeat. Scale only what proves itself.


The Takeaway

Don’t worship the sticker price.

Optimize total cost, cash, risk, speed.

Unit price ≠ profit. Profit is the system.


Quick Glossary

  • MOQ: Minimum Order Quantity

  • QA/QC: Quality Assurance / Quality Control

  • Landed Cost: All-in cost per unit after freight, duties, packaging, QA/QC, defects, storage



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