3.6 Negotiating

The main challenge of working with manufacturers and suppliers is setting the MOQs. The factories will always push to produce the maximum amount possible so you have to be able to negotiate an amount that is right for you.

 

You have to cultivate a good relationship with your suppliers and manufacturers, especially when it comes to sourcing as this will greatly impact your costs and margins.

 

When speaking to any factory rep or agents, always remember to ask for wholesale prices. The higher the order, the lesser the cost per product – but don’t over-order either. Try and balance out the amount and cost to the volume that meets your sales forecast.