Understand MOQ risk
Cheap unit prices hide expensive outcomes when MOQ outruns demand, margin, or shelf life.
When to use this
Inputs explained
What each field expects
- Supplier MOQStated in units, cartons, or pallets — enter it the way your supplier quoted it.
- Sell-through & priceRealistic monthly sales and a selling price drive margin, cash recovery, and risk.
- Shelf lifeProduction date + shelf life (or an exact expiry) set the dating; arrival shows what's left on landing.
- Required remaining shelf lifeThe freshness your buyer/channel demands at receipt — drives the safe sell-through window.
What the output tells you
How to read each number
- Sell-through monthsMOQ units ÷ monthly velocity.
- Cash recovery monthWhen cumulative sales value covers the upfront stock cost — not full accounting profit.
- Units at risk / at expiryWhat's still on hand at the buyer cutoff and at expiry.
- VerdictSafe / Caution / High risk, with what to do next.
Worked example
- MOQ: 6,000 units, sales: 500/month → 12 months of stock
- Shelf life: 12 months, lead time eats 2 → 10 months left at arrival
- Sell-through (12 mo) > shelf life window (10 mo) → units at risk
The cheap unit price hides a markdown bill. Negotiate phased deliveries or pre-sell first.
Common mistakes
- Treating MOQ as fixed instead of negotiating phased deliveries.
- Using best-case sales velocity instead of recent actuals.
- Forgetting that shelf life starts at production, not arrival.
- Comparing supplier price without checking margin and the sell-through window.
Cheap stock is expensive if it expires before it sells. If sell-through exceeds the safe shelf-life window — or the margin doesn't recover your cash — renegotiate before you buy.