What’s the point of having a minimum order quantity?

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Minimum order policies are established by wholesale suppliers and producers to ensure that they make a profit on each and every order.

Frequently, the more you produce, the less it costs. This has to deal with labor expenses, raw resources, and physical capital, among other things.

Producing 15 units of a good, for example, may result in a loss, necessitating the production of 50 to break even. It doesn’t make sense to sell 15 units if they’re going to lose money.

That is why the minimum order policy was implemented.

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