MOQ is Killing Your Cash

You know when to reorder, but how much? This is where brands trap cash. Here's the main formula: order quantity equals target days of stock times daily sales rate minus current inventory. Example: if you want 60 days of stock, you sell 50 units a day, you currently have 500 units on hand, 60 times 50 minus 500 equals 2,500 units. That's what you need, 2,500 units. But here's where it gets tricky. Your supplier says minimum order quantity is 5K. Most founders just order 5K. Don't you just double your order to hit someone else's minimum? That's not smart buying, that's an MOQ trap, and it's one of the fastest ways to bury cash in inventory you don't yet need. Negotiate. Ask if they'll flex on minimums for a longer-term commitment. Find an alternative supplier with lower MOQs, split the order, get creative, but do not accept 5K because that's what they told you. Order what you need, not what your supplier wants you to order. That's the rule.