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Discounts for multiple customers

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  • 18-11-2012 2:14pm
    #1
    bmwguy
    Closed Accounts Posts: 2,006 ✭✭✭


    Question is a bit vague, and prob very difficult to answer. I am an accountant looking to branch into a business venture so looking for some viewpoints, maybe from some existing salespeople. Generally speaking, on normal run of the mill goods that are widely available in a competitive market and supply exceeds demand (i.e. Sellers actively seeking customers) what discounts would a seller offer someone representing many potential new customers? For example, 10 customers, 50 customers, 100 customers. The entire business of these customers will go to the supplier that offers the best combo of price/service. What would they do to win this business all for themselves? I know its not an exact science and profit margins vary depending on a huge number of factors. Any suggestions welcome!


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    #2
    Peterdalkey
    Closed Accounts Posts: 2,091 ✭✭✭Peterdalkey


    If you buy a pallet of product from me, I will give you a much better price than for one pack. I will have a much lower per unit delivery charge with a pallet than say 50 individual drops. I will only have 1 invoice and have only one payment to collect.
    However if you want to give me 50 x 1 pack orders and get me to do the delivery and process each transaction, I might consider 5 % discount versus 20/25% off list on a pallet lot.

    On a more general note, products with more supply than demand tend to be very aggressively priced already, so the scope is limited, market dynamics already at work! The web also greatly enhances price transparency. Look also at the Bargain Alerts forum on boards.ie to see what the supply side are at on consumer products/services.

    I do not wish to be negative but it is hard to see your USP , at least from the information provided in your OP.

    Cheers

    Peter


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    #3
    riveratom
    Registered Users Posts: 964 ✭✭✭riveratom


    bmwguy wrote: »
    Question is a bit vague, and prob very difficult to answer. I am an accountant looking to branch into a business venture so looking for some viewpoints, maybe from some existing salespeople. Generally speaking, on normal run of the mill goods that are widely available in a competitive market and supply exceeds demand (i.e. Sellers actively seeking customers) what discounts would a seller offer someone representing many potential new customers? For example, 10 customers, 50 customers, 100 customers. The entire business of these customers will go to the supplier that offers the best combo of price/service. What would they do to win this business all for themselves? I know its not an exact science and profit margins vary depending on a huge number of factors. Any suggestions welcome!

    Emmmm, you might need to be a bit more specific and give more info! Sure you haven't even mentioned what industry or sector it is! That is a real 'how long is a piece of string' question to be fair ;)

    I don't think price is the ultimate factor, and price + service may not be either. Price + service + perceived quality is probably nearer the mark.


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