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| Posted on 3/3/08 at 05:17 PM | |
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OK, I have a customer who has been purchasing 250 16 oz stadium cups with a one color print on each side. They have 42 locations and will order these maybe once or twice a year for each location. They have been paying $75 plus $20 setup plus shipping with their previous vendor. This customer is a big customer for our offset printing department and has occasionally purchased screen printing from us. And I suspect that they may purchase well over $250k/year in advertising specialty products (based on what the regional manager has told me). They have only started ordering ad specialties from us a few weeks ago, but have already placed a dozen or so small orders. We are a new dealer for Kaeser and Blair, and the "list price" (out of the Best Buys catalog) with Kaeser and Blair is 31¢ each plus $20 setup. I am assuming that with our low volume that we will be recieving Kaeser's standard 50/50 commision sharing on this ASI "C" price. Thus, on this $95 order (to match the price of the old vendor) we will only make $17 bucks. This just seems like a lot of work to make the sale, deal with the artwork, fill out the paperwork and wait for a commision check. I thought that maybe I could find a vendor that would allow a little more profit (and still match the price), but when I look at www.pmdm.com I see prices ranging from 57¢ each to 78¢ (plus setup charges) for similar products. Now I am assuming that there may be some type of dealer discount off these products. But even taking the lowest price, and discounting it by 50% I am still coming up with pricing which would yield a lower profit margin than what I make as a Kaiser and Blair dealer. Am I missing something? Maybe I am just not finding the right wholesalers/producers. Is it even worth dealing with these orders that I only make $17 bucks from? | |
  
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