Commercial

MOQ & Quantity Economics

See the published MOQ for a family against the quantity you want, and what the extra parts in a price break actually cost - which is not the same as the unit price.

The order
Prices you have been given

Result

Clears the MOQ of 1

Precision Milling Components is published with an MOQ of 1 pieces and a lead time of 2–4 weeks. Your 100 pieces is 10000% of it.

Published MOQ1 pcs
Your quantity100 pcs
Share of the MOQ10000%
Unit price fall$10.00
Extra spend to get there$5,300.00
Extra units gained150 pcs
Cost of the next part$35.33

What the numbers mean

  • Precision Milling Components is published with an MOQ of 1 pieces and a lead time of 2–4 weeks. That MOQ is a production quantity, not a wall: it is where the setup and the programming spread far enough that a small order is not paying for most of a machine day.
  • At 100 pieces you clear the published MOQ of 1 by 99. Above the MOQ the price is driven by cycle time rather than by setup, so further increases buy progressively less.
  • Going from 100 to 250 pieces costs $5,300.00 more, and the unit price falls by $10.00.
  • The next piece costs you $35.33 - below the unit price at that quantity. That is what a real price break looks like: the extra parts are being bought at a better rate than the average suggests, because the fixed cost is already covered by the quantity you started from.
  • Two quotes at different quantities are not comparable by unit price. The honest comparison is what the extra units actually cost, which is what is shown above.

The published MOQ and lead time are read from the family page you select; the price arithmetic uses the figures you enter. It is not a quotation and it does not commit either side to a quantity.

What you provide

  • Product family
  • Quantity you want
  • Unit price at your quantity
  • Unit price and quantity at a larger order