To win in the world of business, you must play the numbers game! From managing inventory to improving sales revenue, it is all about numbers.
If you want to establish a successful brand of teeth whitening products, you will need the help of a private label manufacturer to enter the market quickly. They will manufacture premium teeth whitening products on behalf of your brand. So, they will want to discuss inventory. Your manufacturer will also require you agree to their Minimum Order Quantity or MOQ.
What is MOQ? Let’s understand in detail.
MOQ is the minimum number of products/units that your manufacturer is ready to produce per order. So, when you place an order, they will manufacture the pre-decided units per production run. There are many reasons an MOQ could be set: production time, available customization options at different quantities, inventory, and logistics.
The Minimum Order Quantity for products varies from one supplier to another. It can be negotiable depending on the level of customization you require. For example, if you buy a generic product such as universal teeth whitening trays , the MOQ will be as low as 25 items. On the other hand, when customization becomes necessary, the MOQ can increase up to 250. For example, if you are interested in custom printed teeth whitening pens , the MOQ will be higher.
Why MOQs are important for Private Label Teeth Whitening Business?
Whether you decide to sell to dental clinics or create an online whitening brand, your business model as a private label brand will remain similar. When you place an order for private label teeth whitening products , the manufacturer will adhere to the MOQ. MOQs may seem like an intimidating upfront cost. But it provides many benefits to a business in the teeth whitening industry.
- Choosing a Manufacturer becomes Easy!
When you compare the MOQ requirements of different manufacturers, you can decide who will match your demands and decide the best option for you.
- Get the Best Price Possible
You can enjoy economies of scale when you do business with a manufacturer with MOQ. When buying teeth whitening products in bulk, you will get the best possible wholesale prices.
- It results in Optimized Cash Flow
The practice of Minimum Order Quantities allows you to set product prices and manage inventory better. It thus leads to improved cash flow management.
Minimum Order Quantity: Picking what’s Best for you?
Like everything else in the private label teeth whitening business, the decision comes down to numbers. Always speak to a representative to get more information so you can make the best decision. Sharing your plan and asking specific questions helps you get the most accurate information.
- EOQ (Economic Order Quantity)
When you have to decide between different suppliers and their MOQ requirements, it is necessary to calculate the EOQ for your business. Economic Order Quantity is helpful for a buyer to understand the ideal amount of inventory that they can manage comfortably. It is dependent on demand forecasts, inventory costs, and profit estimations. Based on the EOQ, you can decide between different suppliers.
- Production Timeline
If you are facing a dilemma between two suppliers with similar MOQs, you can consider their production timelines. Usually, the Estimated Delivery Date depends on the level of customization, the complexity of the production process, and the readiness of the brand artwork.
Choose a teeth whitening manufacturer who will be able to deliver products on schedule. It will keep your inventory and warehousing costs low. Discuss Just-in-Time production costs to know whether they will be able to address your seasonal demands successfully.
- Brand Values
Brand values may seem intangible criteria for selecting a dental whitening supplier. However, it can guide you in choosing what's best for your business.
For example, if you are an established business with a risk-averse approach, you choose lower MOQ to understand what works for your customers. It means reduced investment and lower risk. On the other hand, if you are looking for an aggressive entry into the teeth whitening business, you can opt for a higher MOQ. It will avoid the possibilities of stock-outs and help you to establish your brand.
For a startup with limited funding, you can choose lower MOQ and scale the number as and when the business picks up. Learn more MOQ tactics for private label teeth whitening startups here.
Talk to the Experts!
MOQ is a crucial aspect of every private label business. If you make the wrong decision, it can affect your chances of becoming a successful brand.
If you have trouble deciding, you can talk to the sales representative of the teeth whitening manufacturer and understand what suits your business.