DENIZEN is not an archetypal cookie cutter mass manufacturer that stocks its inventory in anticipation for future ready to ship orders, because we never know where the next contract is coming from, for what destination, requiring what metal lines attached to what type of closure or what color of stringing, in what quantity. Each order matches one unique retailer that fits all of the above criteria.
Henceforth, the basic notion of stocking is unpractical for DENIZEN business model. However to every rule there is exception. Some very large retailers require considerable periodic volumes to be delivered at frequent scheduled deliveries throughout the year to suit their logistics. i.e. Cruise lines, chain retailers with more than 10 doors.
As for any production facility, we are subjected to invariable fixed costs that are unconnected to the size of an order, commonly known as economies of scale.
The bulkier the order over the MOQ, the lower the cost to produce one incremental item, thus the lower will be your unit price by reason of fixed costs divided over a larger number of pieces. The opposite is inversely true. The smaller the quantity of an order, equal or below our MOQ, the higher the cost of one piece to produce as fixed costs are fractioned over a smaller quantity.
The savings of lower cost of production per unit, due to economies of scale are without fail passed on to our retailers. Consequently they benefit from more alluring prices that increase their margins as per the schedule below that gives you a guideline.
The following is the schedule of stainless steel margins. Silver and Gold metal lines carry different margins available upon request:
|QUANTITY||MARGINS||* If order placed within a week of issuance of proforma|
|Qty < 1/2 MOQ (< 250)||50%||enjoy an extra 5% rebate credited in free merchandise|
|Qty >= 1/2 MOQ (>= 250 up to 499)||55%||enjoy an extra 5% rebate credited in free merchandise|
|Qty = 1 MOQ (= 500 up to 749)||60%||enjoy an extra 5% rebate credited in free merchandise|
|Qty >= 1.5 MOQ (>= 750 up to 999)||65%||enjoy an extra 5% rebate credited in free merchandise|
|Qty >= 2 MOQ (=/+ 1000)||70%||enjoy an extra 5% rebate credited in free merchandise|