Is a Distributor "Low-Balling" if They Get End Quantity Pricing
and Pass the Savings on to their Client?
Great question!
Before I answer it, let me say that the main point I wanted to make is that clients who buy primarily based on price are normally the least loyal clients you can find... The moment someone else comes along with a lower price, they're gone!
Also keep in mind, that end quantity pricing normally means you get a SMALLER profit margin on a LOWER selling price... which means that
much of the "savings" you pass along comes right out of your own pocket!
For example: Let's say you have access to end quantity pricing on the following grid:
|
Quantity
|
100
|
250
|
500
|
1000
|
2500
|
|
Unit Cost
|
10.00
|
9.05
|
8.25
|
7.58
|
7.00
|
CODE: PQRST
So your unit cost on the item is $7.00 (T) or $4.90 regardless of quantity.
If your client wants 100 units and you offer to "pass on the savings" and sell them 100 units at the end quantity price of $7.00, you give up $290 in gross profit. Observe:
100 units @ $10.00 = $1,000 (P) = $500 gross profit.
100 units @ $7.00 = $700 (T) = $210 gross profit.
Same order. Same amount of work, $290 less in profit to pay commissions!
Is that Low Balling?
You have to decide for yourself... Just go in with your eyes wide open and understand what's really happening to your money!
In the Top Secrets of Promotional Products Sales system, we provide you with hundreds of specific ways that you can increase your value to your clients, which allows you to increase both your sales and your margins. If you are the type of person who wants to build a successful, profitable business and a client base that appreciates the value you provide, call us today, toll-free at 1-800-494-2721 and begin a full-year, risk-free test drive of Top Secrets or click through the links below.
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Sincerely,
David Blaise
Top Secrets of Promotional Products Sales
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