Saturday, August 10, 2013

Minimum Order Quantity FOB Tactic

There is a disconnect in international trade promotion, where on one hand the experts brought into elucidate in international trade share the "if it bleeds it leads" stories that demonstrate the expertise of the speakers.  Those considering importing or exporting hear these hair raising tales think twice about entering the field.  What is not mentioned is the speaker is still standing, though, right?  That is to say, like all business problems, they get managed.

What is not shared is the ancient practice of small test orders.  I was taught 40 years ago about this, and I am sure it had been handed from generation to generation.    I think the transmission was broken, as one of just another very many examples of the damage done in the economic boom cycles.

So now it is being "rediscovered."  I am happy to see it.  The Hong Kong Trade Development Office did a study in 2012 that showed the practice is widespread, called it a trend and are no pushing it.  All to the good.

Here are some examples of the MOQ FOB, from Hong Kong.

http://www.hktdc.com/suppliers-products/Organic-Kidney-Bean/en/1X07ZU3F/2105939/

http://www.hktdc.com/suppliers-products/Organic-Dried-Apricot/en/1X06QPLC/1774254/

http://www.hktdc.com/suppliers-products/T-Shirt/en/1X06VVLU/2063668/

MOQ FOB relates to B2B.  Of course B2C has always had this...

http://hawaiian-tropical-flowers.com/anplan.html

MOQ FOB is an essential tactic in small business international trade.

Feel free to forward this by email to three of your friends.


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