Supplier, launch and expansion decisions · Price, MOQ and terms
Supplier negotiation
The unit price is only one term. MOQ, payment, tooling, lead time and quality responsibility decide the real cost.
Key facts
| Price tiers | Ask for quotes at several quantities to see the real cost curve |
|---|---|
| MOQ | A lower MOQ can be worth a higher unit price for a test order |
| Payment | Deposit and balance terms affect cash and risk; a lower price with full prepayment may be worse |
| Tooling | Clarify who owns moulds, dies and artwork, and what happens if you switch suppliers |
| Quality | Put the specification, inspection standard and remedy in writing |
| Official source | The signed purchase order and the supplier's written quotation |
Price is one term among many
A supplier negotiation that focuses only on the unit price leaves the expensive terms untouched. The minimum order decides how much cash is committed, the payment terms decide how long the cash is at risk, and the tooling clause decides whether you can leave.
Ask for the cost curve at several quantities. The difference between a hundred and a thousand units tells you whether the supplier has fixed setup costs or is simply discounting. It also tells you where the MOQ is negotiable.
Trade concessions deliberately
If you accept a higher unit price for a lower MOQ, write down what you bought: less inventory risk and a faster test. If you accept a longer lead time for a lower price, write down the working capital and stockout risk. A concession without a recorded reason becomes a permanent cost.
Put the specification, the inspection standard and the remedy for defects in the purchase order. A supplier who will not document quality is a supplier who will dispute it later. Keep every revision of the specification dated.
Frequently asked questions
Should I always negotiate the lowest price?
No. The lowest price can come with a higher MOQ, worse payment terms or weaker quality. Compare the total cost and the risk.
How do I lower the MOQ?
Ask for a trial order, a mixed-SKU order or a stock color. Some suppliers will accept a lower MOQ at a higher unit price.
Who owns the tooling?
It depends on the contract. Clarify ownership and transfer terms before paying for a mould or a die.
What should be in the purchase order?
Specification, quantity, price, payment terms, lead time, packaging, inspection standard, defect remedy and the Incoterm.
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