MOQ helps only if it blocks small orders from getting deep discounts.
Selling more units at a too-low price does not fix the problem. It makes the lost money bigger. The gate should say: if an order is small, it should not get M3/M4/M5.
Use M2/List for small orders. Give M3 only when the customer buys a real wholesale-sized line. Give M4/M5 only for large lines, large orders, or approved program customers.
What we can prove now
With product-level sales, we can size sensible line/order gates. To prove exact customer impact, we still need invoice lines by customer, order, part, quantity, and actual sell price.
Median Top 50 MOQ is a real multi-unit line.
Deeper discount should need a bigger line.
Deepest discount should not be automatic.
Suggested order-value gates for M3 / M4 / M5.
Median raise to reach 80% of market middle.
Median gap as share of target price.
If all Top 50 sales used M3 vs target.
Not without actual order/invoice controls.
Recommended Starting Gates
Use line-value gates for the SKU discount, and order-value gates for the whole invoice. This is easy to explain and easy to enforce.
| Tier | Minimum line value | Median MOQ units | P75 MOQ units | Max MOQ units | Typical gap/unit | Plain-English rule |
|---|---|---|---|---|---|---|
| M3 | $750 | 5 | 7 | 25 | $51.44 | Normal wholesale gate: should require a real line, not a one-piece casual order. |
| M4 | $1,500 | 10 | 15 | 50 | $52.94 | Deeper discount: should require a bigger line or manager approval. |
| M5 | $2,500 | 17 | 25 | 99 | $66.16 | Deepest discount: should be reserved for large/committed orders, not default customers. |
| Tier | Minimum whole order value | Reason |
|---|---|---|
| M3 | $1,500 | At least two meaningful leaf-spring lines or a mixed wholesale order. |
| M4 | $3,000 | Enough volume to justify a deeper tier. |
| M5 | $5,000 | Reserved for large orders or explicit program customers. |
Why This Is The Right Direction
Small orders pay retail-ish
Small orders should move to List/M1/M2 or target pricing. They should not get M3 by default.
Big orders can earn discount
If a customer is buying enough, the discount becomes a business decision instead of a habit.
M5 needs approval
M5 is too deep to be an everyday price. It should require large volume, contract, or manager approval.
Scenario Table
For each possible minimum line value, this shows the typical number of units a customer would need to buy on a Top 50 leaf spring line.
| Tier | Minimum line value | Median MOQ units | P75 MOQ units | Max MOQ units | Median line value at MOQ |
|---|---|---|---|---|---|
| M3 | $250 | 2 | 3 | 9 | $313.00 |
| M3 | $500 | 4 | 5 | 17 | $553.00 |
| M3 | $750 | 5 | 7 | 25 | $835.50 |
| M3 | $1,000 | 6 | 10 | 34 | $1,072.50 |
| M3 | $1,500 | 10 | 14 | 50 | $1,564.00 |
| M3 | $2,500 | 16 | 23 | 84 | $2,568.00 |
| M4 | $250 | 2 | 3 | 9 | $309.50 |
| M4 | $500 | 4 | 5 | 17 | $554.00 |
| M4 | $750 | 5 | 8 | 25 | $827.50 |
| M4 | $1,000 | 7 | 10 | 34 | $1,072.50 |
| M4 | $1,500 | 10 | 15 | 50 | $1,553.50 |
| M4 | $2,500 | 16 | 24 | 84 | $2,565.00 |
| M5 | $250 | 2 | 3 | 10 | $307.17 |
| M5 | $500 | 4 | 5 | 20 | $595.92 |
| M5 | $750 | 6 | 8 | 30 | $818.88 |
| M5 | $1,000 | 7 | 10 | 40 | $1,082.38 |
| M5 | $1,500 | 10 | 15 | 60 | $1,568.97 |
| M5 | $2,500 | 17 | 25 | 99 | $2,575.29 |
Part Examples Under M3
Examples using the suggested $750 line gate for M3. The “2-year proxy gap” is the sales-weighted money left behind if M3 is used instead of the target price.
| Rank | Part | 2-year sales | M3 price | Target price | Gap/unit | MOQ for $750 line | 2-year proxy gap |
|---|---|---|---|---|---|---|---|
| 2 | 46-1277 | 1,402 | $174.00 | $329.45 | $155.45 | 5 | $217,938 |
| 1 | 46-1460 | 2,058 | $174.00 | $225.66 | $51.66 | 5 | $106,325 |
| 19 | 59-594 | 276 | $369.00 | $632.06 | $263.06 | 3 | $72,603 |
| 26 | 43-2075HD | 249 | $289.00 | $496.24 | $207.24 | 3 | $51,603 |
| 4 | 46-1458 | 1,024 | $156.00 | $202.78 | $46.78 | 5 | $47,899 |
| 21 | 43-1747HD | 266 | $279.00 | $458.54 | $179.54 | 3 | $47,757 |
| 20 | 56-285 | 270 | $145.00 | $310.38 | $165.38 | 6 | $44,654 |
| 27 | 43-1681HD | 237 | $245.00 | $410.29 | $165.29 | 4 | $39,173 |
| 5 | 43-818 | 907 | $107.00 | $150.10 | $43.10 | 8 | $39,088 |
| 23 | 69-285 | 258 | $105.00 | $250.40 | $145.40 | 8 | $37,513 |
| 18 | 90-363HD | 281 | $168.00 | $290.15 | $122.15 | 5 | $34,325 |
| 3 | 43-1263 | 1,345 | $135.00 | $160.42 | $25.42 | 6 | $34,195 |
| 13 | 50-389 | 321 | $157.00 | $262.82 | $105.82 | 5 | $33,970 |
| 37 | 55-1219HD | 183 | $439.00 | $616.79 | $177.79 | 2 | $32,536 |
| 6 | 43-1291 | 902 | $30.00 | $61.98 | $31.98 | 25 | $28,850 |
What We Need For The Exact Answer
Needed invoice fields
Order number, order date, account number, part number, quantity, unit sell price, price level, branch/location, and invoice subtotal.
Exact question it will answer
For each proposed gate, how many historical orders would fail, how much revenue would increase, and which customers need a commercial exception.