Why Do Fastener Manufacturers Require High Minimums?

One of the biggest obstacles for fastener buyers is adhering to the minimum purchase quantities set by the companies that manufacture them. Most buyers don’t need massive quantities of retaining rings, clamps or pins. But if they want to buy from the source, they are required to purchase in bulk.

Why is this the case? Don’t these suppliers want to sell their product? Even regular-sized orders can add up to respectable sales revenue, right? Truth be told, it’s not that simple – especially for manufacturers.

It costs a lot to store raw materials, especially steel. MOQs help keep inventory costs manageable. Direct, bulk orders that adhere to a higher quantity threshold tend to be the most effective at keeping materials moving at a steady pace.

Order processing takes time (and time is money). Accommodating a daily influx of customers requires an e-commerce infrastructure, ideally paired with a dedicated service component. To turn a profit, repeat business is essential. Buyers will only come back for more if they receive excellent service, so even the smaller orders need the same level of attention. With their primary focus on engineering and production, very few manufacturers have the time or bandwidth to dip below their required minimums.

Now let’s talk about shipping. Sending out a box of 500 cable clamps requires the same amount of time as it takes to ship out a box of 50,000. The address still needs to be entered into the system, the box needs a label, and someone has to load it onto a truck. Internal paperwork and tracking must be managed for every shipment that leaves the dock, regardless of size. All of this requires diverting attention away from manufacturing.

For a large-scale producer of essential parts, the costs associated with fulfilling every order simply aren’t worth the distraction. They’re in the business of making quality fasteners, not distributing them. Smaller order fulfillment and just-in-time delivery is a job for, well… a distributor.

This dynamic is exactly what paved the way for Prospect Fastener to open its doors over 40 years ago. We saw potential in retaining ring buyers who needed a way around manufacturer minimums. Our company embraced this business model, making it our mission to partner with reputable suppliers and distribute reasonable quantities backed by excellent service. We slowly rolled in cable clamps, hose clamps, industrial pins and a few other fasteners to round out our available product lines.

Today, we thrive in a fastener market that depends on stocking distributors who offer value. Such value extends beyond waiving manufacturer minimums. Our customers enjoy products from U.S. based suppliers like Rotor Clip, KMC Stampings, Driv-Lok and more. Lot traceability for all items ensures transparency and added protection against performance issues. Above all, Prospect Fastener distributes value by putting your needs first – and delivering the service you deserve.