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July 8, 2008

"Can End Quantity Pricing Actually Hurt My Business?"

Dear Top Secrets Subscriber,

Getting End Quantity Pricing (or EQP) from preferred suppliers is a goal for many industry distributors.

But can EQP actually hurt your business if you pass it on to your clients?

In a Nutshell, Yes...

But let's back up for a second. In a free market system, we get to decide what we'll charge our clients. And many distributors request EQP from their preferred suppliers so they can pass the savings on to their clients.

But before you immediately pass it on, consider this:


Top Secrets Author, Entrepreneur & Business Consultant, David Blaise

Selling Small Quantities at EQP Normally Gets You a
Smaller Profit Margin on a Lower Selling Price...

This double whammy means that much of the savings you "pass along" may actually be coming right out of your own pocket without you realizing it!

Example: Let's say you have access to end quantity pricing according to the following grid:

Quantity
100
250
500
1000
2500
Unit Cost
10.00
9.00
8.22
7.56
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, the client pays $700 instead of $1,000 and saves $300 on the order.

But Guess What? $290 of that $300 Came Right Out of Your Pocket! Impossible, You Say? Do the Math...

100 units @ $10.00 = $1,000 (P) = $500 gross profit to your company. But...
100 units @ $7.00 = $700 (T) = $210 gross profit to your company.

Same order. Same amount of work, but by passing on end quantity pricing, you've earned $290 less on the sale!

So Whose Money are You Passing On, Anyway?

Every industry professional knows how to read a price grid... but most fail to understand the enormous impact that those price grids can have on the success or failure of their business.

One of the reasons that Top Secrets of Promotional Products Sales is so valuable is that it shows, in concrete examples, how to make this industry work for you, rather than against you. It gives you the information you need to make important decisions for yourself with your eyes wide open so you can understand what's really happening to your money!

If you are a business owner who has not yet requested a full-year, risk-free trial of Top Secrets, why wait? The system is guaranteed to generate at least ten times its cost in additional sales or bottom line savings or you don't pay!

  • If you're just getting started, click here.
  • If you're a business owner in need of ideas and strategies, turn on your speakers and click here.
  • If you're a salesperson in need of more sales and clients turn on your speakers and click here.

We're here to help.

Sincerely,

David Blaise
Top Secrets of Promotional Products Sales

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