Lara Guevara shows DTC founders how to cut supplier minimum orders by up to 60% and get 8% pricing discounts. Share forecasts to prove you're reliable, split batches to reduce upfront costs, or trade faster deposits for better rates. She includes sample scripts you can use.
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If you think shiny suppliers won't negotiate with small DTC brands like yours, you're wrong. One of our clients came to us thinking they had to order 5,000 units at the supplier's minimum order quantity. And by the time we stepped in, we cut their MOQ down to 2000 units without paying a single cent more per unit. So if you've ever felt like you don't have a leverage because your order volumes are small, stay with me. I'm going to show you three powerful negotiation techniques you can use even if you're placing your very first po. And at the end, I'll give you a free negotiation master template kit packed with scripts, checklists and templates so you can start negotiating like a pro today. At most supply chain, we've negotiated with hundreds of factories across China, Vietnam, US and Europe for DTC brands doing anywhere from pre revenue to 300k to 10 million plus annually. And we know exactly how suppliers think, what matters to them and where you have leverage even when they tell you this is the minimum quantity. And there's no room for negotiation. I promise you there's always room to negotiate when you know how. And I've worked with big brands before. I support ttc, fast food chain in the us, multinational skincare and a lot more. And I use the same techniques in my negotiation with smaller DTC brands. And it's just a matter of framing your script that makes it work. And with this technique, we've successfully helped founders cut MoQs by up to 60%, get better pricing with smaller volumes and secure flexible payment terms that keep cash flowing. And I'm going to break it all down for you step by step. So here's the three negotiation techniques for small DTC founders like yours. So technique number one, leverage, predictability, not volume. Suppliers love big brands because they represent steady, predictable orders. They not because they order huge volumes every time. One of the apparel clients had tiny initial orders, but we helped them secure a lower MOQ and better payment terms by showing the factory their 12 month forecast and planned reorders. So you should show your suppliers your order roadmap. As an example, we plan to start with 1,500 units in Q1, but expect to reorder another 3,000 in Q2. This signals a long term partnership instead of one and done. Here are sample scripts that you can send to your suppliers. We're testing this SKU with an initial order of 1,500 units. If sell through is healthy, we expect to order another 3,000 within the next 60 days. And if you can make this MOQ work together now, you'll be our long term partner for this category. Suppliers prefer reliable partners over more one of big buyers. Show them that your business isn't just this order, it's future orders too. Draft a one page reorder roadmap before you reach out your next supplier and you'll see the difference. Technique number two is split batches to reduce MOQ risk. One of our skincare clients couldn't afford the supplier's MOQ of 5,000 units. Instead of walking away, we negotiated to split production into two batches. 2,000 units shipped first, 3,000 units produced later after sell through confirmation, they secured factory Pricing at the 5,000 unit rate but reduced upfront cash risk by 60%. Negotiate using a commit now, take later model. Agree to the supplier's full MOQ, which is the 5,000 in this case, and ask to ship the first partial batch which is 2000 early and then schedule the balance after validating sales. Here is a sample script that you can use to your suppliers. We understand Your MOQ is 5,000 units. To manage cash flow, we'd like to take 2,000 units first and then commit to the remaining 3,000 within the next 90 days at the same unit price. This gives us flexibility while securing volume for your production planning. Factories care about their production schedule, not how fast you sell inventory. When you commit to a total volume, they're much more willing to be flexible on shipment timing. What you can try today, you email and ask your supplier, can we split the first order into two deliveries while locking in the 5,000 unit pricing? Try that and let me know how it goes. You can comment on the section box and then technique number three is trade certainty for better pricing. A lifestyle brand we worked with wanted better pricing without raising moq. Of course, some vendors have their price breaks and you need to raise your order so that you can have a savings. But we help them negotiate 8% off the unit cost by offering faster deposits and clearer forecasts. So suppliers will often trade better pricing. If you can pay a larger deposit upfront share detailed forecast for upcoming orders. Confirm your payment terms in writing. Here is a sample script. We'd like to commit to a 30% deposit upfront to secure production priority in exchange for X$unit pricing at 2000 MOQ level. If your orders meet the volume we expect, we'd like to revisit pricing for future batches together. Factories value cash flow. By giving them certainty and commitment, you unlock a leverage even with small volumes. What you can try today is Ask your supplier directly what pricing flexibility do we have if we increase our deposit to 30% or to 40%, 50%? Or confirm your orders today. And as a bonus giveaway, I'll be sharing with you a Negotiation Master Template Kit. Now, if you want to skip the guesswork and use the exact scripts and templates we send to our clients, or we've built the Negotiation Master Template inside, you'll get MOQ negotiation email templates. Just copy and paste Reorder Roadmap template so that you can show suppliers your growth potential, MOQ Split Request template so that you can reduce upfront cash risk, pricing leverage script to secure discounts without begging and a supplier negotiation checklist to know exactly what to ask before you hop on the call. This is the same toolkit we use to help brands save /Thousands on their POS and you can grab it for free through the first link in the description. So to negotiate like a pro, even with small volumes, focus on predictability. Show them your order, Roadmap flexibility, split batches to manage cash flow and certainty, trade deposits and forecast for better pricing. When you approach suppliers as a long term partner, not a small client, they'll treat you like one. Negotiate smarter, scale faster and if you want our exact templates, negotiation scripts and proven supply chain strategies, click the first link in the description and you can also book a free strategy call. We'll walk you through how we help other clients to cut MOQ by 60%, secure better pricing at lower volumes and free up tens of thousands in working capital so your next PO isn't just cheaper, it's smarter. And after you book that call, check out our video on negotiating lower MOQs without losing quality because protecting cash starts at the supplier level and the right negotiation can change everything.
