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why aluminum profiles suppliers ask for minimum order quantity

A minimum order quantity (MOQ) is the least amount or lowest number of units that you can request or buy from a supplier or factory in a single order. If you are ordering for a small volume of aluminum profiles, the minimum order quantity that is usually required by profile manufacturers can add a substantial amount to the cost of procuring your extruded aluminum profiles.

Even though you may simply desire a small order to test a new design or to find out how it will fit into an upcoming project idea, there many important reasons why suppliers demand for a minimum order quantity. When you understand these reasons, you will be prepared for the minimum quantity for each order and you will not be frustrated or think that the supplier simply wants to exploit you for selfish reasons.

Here are the reasons why you need to bear with the requirement for a minimum order quantity and how you can also work to reduce that quantity or find a mutually agreeable solution with your supplier.

Overheads Must be Covered

Many aluminum extrusion suppliers will like to offer their customers small quantities but the overheads associated with each batch must be adequately covered. To produce each batch of aluminum profiles, a die must be prepared, and manpower must be adequate to handle all the processes that are involved in the extrusion. The extrusion press will also be occupied while other high volume jobs are kept waiting. So the overhead costs must be covered by requesting for a minimum order quantity.

Suppliers Need to be Profitable

Most suppliers have to ensure that the order you are making is worth their time. Most factories in Asia are operating in a very competitive environment with very low margins. This is why your order must be large enough to justify the expenses needed to complete the order. Each order requires the supplier to set up the production line and get workers involved on an hourly, daily or monthly wage.

The Pricing is Determined by the Order Volume

Order quantity usually affects pricing. A small order will normally attract a higher price while a smaller order will attract a higher price. That is why suppliers encourage you to order for higher quantities per order so that they can reduce the per unit rate. Also, if you really need a very small quantity, you may be better off ordering it from a wholesaler or join with other people who may need small quantities and then order for your products together.

Custom Orders Need Quality Checks

When a die is designed and used for the first time, a number of additional checks must be carried out to ensure that the production run gives the desired quality. That is one of the reasons why a minimum quantity may be required to cover the costs of all the additional costs that go into the first run.

Those are some of the main reasons why you will be required to order for a minimum order quantity. You can reduce the cost of your order by avoiding customization and opting for standardized profiles that you can buy from your supplier at a lower price.