#1 Minimum Order Quantities (MOQs)
One of the most important things to look for in an OEM contract is minimum order quantities (MOQs). This is the minimum amount of product that you must order from the manufacturer in order to receive a discount.
Some manufacturers will have very high MOQs, which can be difficult for small businesses to meet. However, there are also manufacturers that have low MOQs, which can be more manageable.
#2 Pricing
Another important thing to look for in an OEM contract is pricing. Make sure to review the prices of the products you’re interested in and compare them to other manufacturers. You should also ask about any discounts that may be available, such as volume discounts or early payment discounts.
#3 Payment Terms
Another important thing to consider is the payment terms. OEM contracts typically require a deposit, which is usually 50% of the total order value. The balance is then due upon delivery of the goods.
It’s important to review the payment terms carefully to make sure you’re comfortable with them. You should also ask about any additional fees, such as shipping costs or duties.
#4 Delivery Timeframes
When you’re working with an OEM garment manufacturer, it’s important to know about their delivery timeframes. This way, you can ensure that your products will be delivered on time and in the quantities you need.
Some manufacturers may have long delivery timeframes, while others may be able to deliver your products more quickly. It’s important to find a manufacturer that can meet your needs in terms of delivery timeframes.
#5 Warranties and Guarantees
Finally, you should also look for a manufacturer that offers warranties and guarantees. This way, you can be sure that your products will meet your expectations in terms of quality and performance.
Some manufacturers may offer money-back guarantees or replacements if your products are not up to par. Others may offer extended warranties for an additional fee. It’s important to find a manufacturer that offers the right level of protection for your needs.
#6 Termination Clauses
Last but not least, you should also look for a manufacturer that has fair termination clauses. This way, you can be sure that you’re not stuck in a contract if the manufacturer doesn’t meet your expectations.
Some manufacturers may have unfair termination clauses that favor the manufacturer. Others may have more reasonable termination clauses that protect both parties. It’s important to find a manufacturer that has termination clauses that are fair and reasonable.
These are just a few of the things to look for in an OEM contract. Make sure to review the contract carefully before signing anything. And if you have any questions, be sure to ask the manufacturer for clarification to avoid any misunderstandings.