I have a small business where I have been asked to sent pricelists to a number of my customers, some of whom have a number of shops. They are located across Ireland and want a delivered price. If I am to give a delivered price to them all I will not be competitive and loose business in the west and North west. I'm based in Dublin, so transportation is a huge cost to me, currently running at 13%. What should I do, I'm looking for some help as to what to do??
Preparing a Pricelist
- Thread starter Damcm29
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Brendan Burgess
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I am not sure that I understand the problem.
Take one customer with 20 locations. Are you saying that customer wants a quote which would be the same for every location in Ireland?
You would prefer to charge €x per unit + transport, so every delivery would be profitable.
Have you explained your problem to your customer? Sometimes they adjust their requirements.
If they refuse, you could offer a competitive price and refuse to deliver outside Dublin area.
Or else, you just have to quote a higher overall price, in the knowledge that the Dublin orders will be more profitable that they would otherwise be and the country deliveries are loss leaders. Where will most of the orders come from?
Be careful that they don't do the same with a supplier in Galway. Then they will order from you for Galway and from him for Dublin.
Brendan
Take one customer with 20 locations. Are you saying that customer wants a quote which would be the same for every location in Ireland?
You would prefer to charge €x per unit + transport, so every delivery would be profitable.
Have you explained your problem to your customer? Sometimes they adjust their requirements.
If they refuse, you could offer a competitive price and refuse to deliver outside Dublin area.
Or else, you just have to quote a higher overall price, in the knowledge that the Dublin orders will be more profitable that they would otherwise be and the country deliveries are loss leaders. Where will most of the orders come from?
Be careful that they don't do the same with a supplier in Galway. Then they will order from you for Galway and from him for Dublin.
Brendan
could you not price your items as prices excluding delivery? Then explain to your customers that delivery rates vary depending on where you are.
Some customers may have their own transport for products. I know some companies in the west who arrange for their own courier to pick up from suppliers in Dublin.
Also, check out prices from some of the bigger franchise-type couriers. I think Fastway will deliver a box to anywhere in the ROI for something around €6. I think DPD are around the same.
Some customers may have their own transport for products. I know some companies in the west who arrange for their own courier to pick up from suppliers in Dublin.
Also, check out prices from some of the bigger franchise-type couriers. I think Fastway will deliver a box to anywhere in the ROI for something around €6. I think DPD are around the same.
Thank you for the replies; you are spot on Brendan, I have offered a price ex depot; then applied the price to the different shops. The shop managers have said its not fair the shop in Mayo has to pay more than the shop in Dublin, but I explained that to the Managers in all shops; however they dont want this. I need to apply transport including all my costs to all shops and they want only 1 price. This I think will make Dublin more expensive or the rest of the country too cheap and I will loose money on these delieveries. Is this normal for a company to behave like this, I'm unsure what to do and I think they could be abusing me, as they know I wouldnt want to loose the business.
Brendan Burgess
Founder
- Messages
- 53,413
If that is the only way that they will do it, then you have to quote them that way if they want the business.
Make assumptions about the level of business from each area and price it accordingly.
Do not enter into a long term contract as you will need to stop supplying them if the level of loss making business exceeds the level of profit making business.
Sometimes you just have to walk away from customers who are unprofitable or unreasonable.
Brendan
Make assumptions about the level of business from each area and price it accordingly.
Do not enter into a long term contract as you will need to stop supplying them if the level of loss making business exceeds the level of profit making business.
Sometimes you just have to walk away from customers who are unprofitable or unreasonable.
Brendan