4 Ways to Negotiate Minimums with Fabric Suppliers
There are so many moving parts that go into launching a sustainable apparel company and one of the steps that can take the longest is fabric sourcing.
As any seasoned designer knows, the moment you realize you have found the fabric can be a mixture of relief, hope and — apprehension.
The first question that will come into your mind is:
Can I meet the supplier’s minimum order quantity (MOQ)?
Maybe you’re planning to start out with 500 yards (or less) because you’re just getting your brand up and running.
It wouldn’t be unheard of for a supplier to require an MOQ of 1,000 (or more) yards, and there may be many reasons for it depending on who you’re working with.
The first thing you need to is find out why the minimums are set at the amount that they are, keeping in mind that the exact reasons will be specific to the individual suppliers.
Once you find out their “why,” you’ll be better equipped to negotiate.
And then you can devise a plan.
Before you start to propose negotiations, make sure you’re not making one of these other fabric sourcing mistakes and take a look at the supplier’s website before you call or email.
Sometimes you can find the MOQ and the company’s capabilities right on the site, and it can help set you up to make the perfect proposal for negotiation.
Here are some things to keep in mind as you devise the right plan:
>> When a supplier sets a MOQ because of time efficiency for custom dyeing your fabric, offer to pay a flat “dye fee” in addition to the per yard cost of the fabric. This may add to the final cost of the order, but it will likely be much cheaper than ordering three times the amount you need just to meet the MOQ.
>> If the MOQ is in place because it “costs what it costs,” then you can either offer to put down a deposit, but place smaller orders at a time OR you can see if there is the option of “piggy-backing” onto one of their existing client’s orders and splitting the cost. Keep in mind that your production schedule will need to be flexible.
>> If the MOQ is in place because it’s a custom order, let’s say there’s a very particular blue fabric you want but it’s never carried in stock, it may be worth conceding to what the supplier already has available in their warehouse. If you can meet the minimums of an in-stock fabric that is only a slightly different shade of blue, then it’s probably worth settling for it. You don’t want to be so committed to your original vision, that you can’t see the “good enough” version staring you in the face.
>> And lastly, you can try offering to pay a higher price per yard, in order to purchase less than their normal MOQ.
There are many ways that you can go about this, and you will find and choose what works best for you. Go with your instincts, but don’t force it.
If a supplier won’t budge, then it’s better to cut your losses amicably rather than burn a bridge. When one door closes another opens…
Remember, that no matter what avenue you choose for negotiation this is your journey, your brand and your company’s future.
Give it all you got.
