Allen Wayne wrote:
> Hi All,
> 
> I am currently working on a small control box for an exclusive bunt not
> small market. I have been approached by a number of suppliers who are
> looking for wholesale rates of around 50-60% off my RRP. As my pricing was
> based on my profit being similar I am faced with a number of alternatives.
> 
> 1 reduce my profit.
> 2 increase my prices so I can offer a 50% discount for wholesale.
> 3 Only sell 'direct from the manufacturer' and use this as a selling
> point... I pass the savings onto you the customer
> 
> As my price point seems to be comfortable for both myself (I make a profit)
> and my customers (I am perceived to be selling at a reasonable non-rip off
> price) I am heading towards 3, but then obviously my sales will be lower as
> I won't be selling in as many outlets.
> 
> Any comments?
> 
> 
> Wayne

	I would say do not reduce your profit, and do not increase your normal 
prices, but do pass any savings on. If you sell 100 of an item and that 
corresponds to a material savings for yourself, then pass that savings 
on to the customer.
	A 50% discount for wholesale is huge. You should only offer a discount 
that gives you very nearly the same profit. Don't raise your price for 
one market so you can give another market a "too good" price - unless 
you have a good reason to believe this is the best thing to do.

p.s. I am actually currently taking an "engineering economy" class right 
now so I like to think I have at least some small knowledge of what I 
speak of.

p.p.s. That being said - do not take anything I say as sound advice ;)

p.p.p.s. I hate that class.

-- 
--
Martin Klingensmith
http://infoarchive.net/
http://nnytech.net/
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