Minimum Order Quantities & Minimum Value Orders

 

Our minimum order quantity is....... well lets just say that it depends on a number of factors and not just one. We are unable to give a blanket cover answer for this question that covers every situation. This is why every quote that is submitted needs to be validated by our staff at web central first and only if required, adjusted accordingly.

All the prices advertised on the website for cabinetry, panels, bench tops, etc have been caculated upon your order being a medium to large order, typically say 10 to 15+ cabinets plus panels and kickboards as well. This is the size of a typical order we receive from our Bulders, Cabinetmakers, etc that use our website and our pricing matrix has to fit within this critera.  This ensures the pricing is competitive, fair and correct. Pricing for smaller orders is different and this is discussed in more detail further below 

Note: We are not a small order specialist company nor are our price matrix's set up this way.

Our aim/goal is to provide high quality, custom sized cabinets at extremely competitive prices.

Unlike other modular or set-sized flat pack suppliers we don't mass produce the exact same cabinet only to have them sitting on a shelf waiting for someone to buy them. We custom manufacture every single order to your specific sizes which makes us a more bespoke/boutique manufacturer. Whilst this does make the production costs higher per job (compared with making 100's of the same sized cabinet/s), it does also mean that we don't have to have big warehouses all across Australia to store it all (and have a lot of money tied up in inventory) - so it all ends up pretty well balancing out in the long run for meduim to large sized orders. 

 

Small Jobs: Whilst we try to validate every order that is submitted for the advertised price displayed, the reality is that some times this is just not possible for small orders. As explained in more detail further below, the cost of production and/or packaging/transport can sometimes far outstrip the actual quote value. Even with a small administration cost added in, we often just try and break even on the small job, not actually make any profit!  And this is why every quote that comes through needs to be validated by our staff at web central first and adjusted accordingly.

If you are after just one or two cabinets, a few panels or a small bench top then there is likely to be an extra cost to cover the costs of manufacturing small orders. The best way to avoid any small order extra costs is to simply add in more cabinets to your quote, even if it is for another room, home office/study, just extra storage or even some garage cabinetry - anything to make the job more viable in order for it to be processed.

Small Poly Painted Jobs: There are small jobs and then there are also small Poly Painted jobs. There are extra processes (on top of just running a normal small job) involved with Poly Painting. Please see here for what these processes are and what is involved: 

 

See further below for more infomation about running normal small orders:

Note: The factory outlets at either Kilsyth (Vic), Noosa (Qld) have a min $550* joinery order value, so if your joinery order is only a small order (under this amount), then this may need to be manufactured by a different factory and it will then either need to be sent to a Depot (closest to you) for pick-up or sent to you via Home delivery -There are additional costs associated with this however.  Once you submit your quote for validation we will advise if this is necessary.
*subject to certain material selections

 

Below is a brief explanation of what some of the 'fixed' costs associated with the type of custom manufacturing that we do.

There are 4 main areas that effect cost for custom sized manufacturing:

  1. Admin Costs:
    With every job there is a minimum office cost to cover things like the job detailing, job processing and book keeping, etc. With a small job these costs are unable to be absorbed as there are only a few items and/or the dollar value of the sale is very low. In a normal sized job these costs are able to be spread out over each item, therefore making the job viable to run. With a small job a minimum administration charge will be applied.

     
  2. Material Costs:
    Normal sized jobs often use mutiple sheets of material whereas smaller jobs often uses only a couple of sheets, one sheet or even less than a single sheet and thus the wastage/off-cut % is much higher in small jobs (as the sheet does not optimize well because it doesn't have enough parts in them). In addition, small jobs (i.e. a small bench top or a colour baord material) still needs the material to be purchased, even though only a portion is required and the rest of the off-cut can't be used on another job. Furthermore, all suppliers now charge an order fee, they may call it a different name but the outcome is the same. So with any colour that has to be specially ordered in this order fee will be charged and typically this is around $25-$30. If your job requires 6 sheets of colour board, then the order fee is divided by 6 (say $4.75 per sheet) whereas if it's just the one sheet, then the whole cost needs to be added to that one sheet. Another factor is the cost of edging, as with some edge tapes these are only available in 100 L/mtr rolls, so if you were just ordering one or two cabinets, you would still need to buy the same amount of edging as if you were doing 15 cabinets. So, as you can see with small orders there needs to be an extra cost added to small jobs to cover these.

     
  3. Factory Labour Costs:
    With any manufactured job there is a certain amount of 'set-up' time and 'clean down' time after a job is run. With normal sized jobs these costs are absorbed over the entire job because the job is big enough to do this, however with small jobs this is not possible, so this needs to be added to the cost of small jobs.  

     
  4. Delivery/Freight to Depot Costs:
    If there is any Delivery associated (Home Delivery or Delivery to a Depot) there is a minimum cost to do this. With a normal sized job this cost is absorbed over the entire job however with small jobs this is not. If the job is required to be boxed and sent to a Depot or home address then there is a cost in materials and labour to make the box.  It is basically the same cost to make 1x box for say 15 cabinets as it is to make 1x box for one or two cabinets or a small bench top. This is because as you are able to spread the cost of making the box over the15 cabinets rather than just one or two. So with small jobs there needs to be added to the cost to cover this. 

 

In summary, with normal sized jobs all of the above costs get factored in and these fixed costs are then spread over the number of cabinets ordered (typically 10 to 20 cabinets in a normal sized order) and therefore these 'fixed costs' work out to be a much smaller overall percentage (10 to 5%) of the job value (as they are absorbed in the over-all sale price). With smaller jobs this percentage is much, much higher for example: If it's just two cabinets it's 50% or just one cabinet it is 100%, as there are just not enough cabinets to absorb these fixed costs, thus making the quote uneconomical to manufacture.
 

Time Frames for Small OrdersSometimes the time frame for small jobs (selecting from the pre-set colour range) is purely dependent upon when another liked-material job comes along for that factory. We do understand that there are some jobs that are time critical and if your job is one of these, please let us know and we can re-adjust the quote to incorporate the extra wastage involved to get this job underway for you without the delay (typically around 20-25% extra)  - If you need the order ASAP and you would like to know if your job falls under these conditions, please contact us and we will advise you. 

 

Q. Why can't you simply calculate a correct price at the time of the on-line quote for small orders?
A. Whilst in theory this is possible to do (nothing is impossible), it’s just that the extent of the development required is a lot larger than first appears. To offer a fair system for all circumstances one must take everything into account and the development process would have to cover numerous factors like material type; where the job is going too; which factory is used; size of box required; current workloads; other 'like material jobs' active jobs; etc. So for us to engage the web developers into all the research, planning, development, coding, implementation and testing would cost tens of thousands of dollars and given that these are such tiny jobs to begin with (and also the requests for small jobs is actually very rare), it is actually economically unviable as there is almost a nil return on the financial return of investment (RIO) involved. So it just doesn't make economic sense especially when development investments are far better suited (and more beneficial for our customers) in other areas.

 

Final Note for Small Orders: We try to validate all orders, sometimes this is not possible (for the reasons detailed above) and therefore we do reserve the right to decline a quote if it's just too small and not viable to manufacture.

 

 
We hope that this information has been helpful for you.

If you need further help or more information on this topic please: 

 


Thank you, 
From all the team at OzFlatPacks