When Should a Brand Increase MOQ to Improve Unit Economics?

When Should a Brand Increase MOQ to Improve Unit Economics?

Increase quantity when demand and total economics justify the additional inventory commitment.

A lower initial commitment is useful only when the complete economics remain workable. Compare development charges, surplus materials, unit price, storage, and replenishment terms together; buying additional units solely for a lower price can increase exposure to unsold inventory. Compare savings with cash exposure and storage costs.