The Minimum Order Quantity (MOQ) requirement specifies the lowest quantity of a certain product that a supplier is willing to sell. In eyewear industry, the MOQ is 300pairs/model in 3 colors.
If the importer cannot reach the MOQ requirement, then the supplier is not willing to enter production becaused of below two reasons.
1. Low profit margins require larger volumes
Chinese suppliers tend to have very low profit margins, as low as 2-3% is common. Price competition is fierce and Chinese businesses in general tend to be focused on keeping a low price rather than improving service level and developing new products. Low profit margin requires the supplier to produce a large quantity of products in order to break even.
2. Subcontractors also have MOQ
Most Chinese suppliers would be happy to do business with smaller buyers if they could. In fact, many of them dislike the fact that a high MOQ requirement forces the eyeglasses factories to rely on a smaller number of large companies that could walk away with their business without notice. The problem is that the MOQ is not decided by the supplier alone, but also by its subcontractors.
Every supplier need to purchase materials and components from local eyewear subcontractors, and every subcontractor requires the supplier to purchase a certain quantity. The suppliers MOQ requirement is thus a reflection of the MOQ requirements imposed by its subcontractors.
In Opticians Club, our vision is to help independent eyecare professionals to buy frames directly from eyeglasses factories without MOQ limitations. You can even order one piece per model, because we knew you will have steady demand for all of fashion styles.