How to make good price to the customer?
Post 1 of 17
As the price of raw material rising, and the appreciating exchange rate of RMB to USD, We have to make more higher price to make quotation to our customer. Whatever we explained this to our customers, they said they wouldnot accept the price. What should I do?
04 Mar 2008 23:38
Post 2 of 17
Replying to [cuihua]:Hi I am also having this problem because now-a-days the price of raw material are incresing & Labours demand are also increasing in this way you should have to decrease your mark up percentage for making party. If you have any question please ask me.
05 Mar 2008 06:00
Post 3 of 17
Replying to [cuihua]:![[em1]](http://img.alibaba.com/images/eng/style/icon/emoticons_smile.gif)
Hope the expert can give us some good advices.
Hope the expert can give us some good advices.
05 Mar 2008 06:33
Post 4 of 17
Replying to [Muhammad Azam]:
Guess there's nothing you can do for this, tell ur customer the real situation and the real customer will understand why u raise the price...
Guess there's nothing you can do for this, tell ur customer the real situation and the real customer will understand why u raise the price...
05 Mar 2008 21:17
Post 5 of 17
Replying to [cuihua]:
All of us face to this problem.![[em4]](http://img.alibaba.com/images/eng/style/icon/emoticons_sad.gif)
All of us face to this problem.
05 Mar 2008 21:39
Post 6 of 17
Replying to [cuihua]:
It is the common situation for export now, it is a history problem for the "World manufacture factory", the purchaser always like to compare the prices. However, I believe the difficulty will pass and the ones who really want your products will understand and accept it.![[em17]](http://img.alibaba.com/images/eng/style/icon/emoticons_shake_hands.gif)
It is the common situation for export now, it is a history problem for the "World manufacture factory", the purchaser always like to compare the prices. However, I believe the difficulty will pass and the ones who really want your products will understand and accept it.
05 Mar 2008 23:38
Post 7 of 17
Replying to [cuihua]:
In this situation, i always think if some small trading companies will breakup which can not face these diffcult dissolving problems.![[em8]](http://img.alibaba.com/images/eng/style/icon/emoticons_cry.gif)
In this situation, i always think if some small trading companies will breakup which can not face these diffcult dissolving problems.
05 Mar 2008 23:46
Post 8 of 17
Replying to [cuihua]:Yes.I have had the same experience before.Up to now,I still haven't found any good explanation for that.How can I do ?Yous words is my mouth words. I wish we will get the good answer.
05 Mar 2008 23:55
Post 9 of 17
Replying to [AdamDai]: I very much agree to this point. We have no other choice but to try our best to explain this to our customers. Genuine and good customers should understand this
06 Mar 2008 03:44
Post 10 of 17
Replying to [cuihua]:In business, it is a norm that Buyers always try to suppress the Selling Price. Therefore, every Sellers will face the same situation.
Below are few proposals:
1) Lower Selling Price but increase the order quantity;
2) Maintain the order quantity and price but throw in some bonus, eg. Free items or service.
3) Increase order quantity but give extra few % incentive.
4) Break the order quantity into few orders but with slightly higher price.
5) If Buyer achieve the agreed (state on Agreement) annual order quantity, give extra incentive.
Below are few proposals:
1) Lower Selling Price but increase the order quantity;
2) Maintain the order quantity and price but throw in some bonus, eg. Free items or service.
3) Increase order quantity but give extra few % incentive.
4) Break the order quantity into few orders but with slightly higher price.
5) If Buyer achieve the agreed (state on Agreement) annual order quantity, give extra incentive.
06 Mar 2008 08:32
Post 11 of 17
Replying to [cuihua]:
I am also having this problem as the dollar is getting weak in Latin America. I pay for my orders in the local currency (In Peru they use soles) so every time I import food from Peru, I have to pay more dollars for Peruvian "soles".. So when my product arrives to USA, it cost me more, so I need to increase prices.
However I give the customers some additional options for them to consider, so I leave it up to them, of course I explain to them the reasons.
1) The buyer could get the same price if they double the order, I lower the profit margin, but because of volume I recover the investment faster.
2) I charge them the new price and will help them with marketing expenses, I will include their logo and mention him as a point of sale in the ads to be published on newspapers.
3) Let them buy less quantity than the minimum at the new price, to test if their end customers still are willing to pay the new price.
In business you need to make money, otherwise you can not survive the up and downs of the trade. Always look for opportunities to be creative, and give your clients options to consider, they wiull appreciate the gact that you want to help.
Vicente Huaman
I am also having this problem as the dollar is getting weak in Latin America. I pay for my orders in the local currency (In Peru they use soles) so every time I import food from Peru, I have to pay more dollars for Peruvian "soles".. So when my product arrives to USA, it cost me more, so I need to increase prices.
However I give the customers some additional options for them to consider, so I leave it up to them, of course I explain to them the reasons.
1) The buyer could get the same price if they double the order, I lower the profit margin, but because of volume I recover the investment faster.
2) I charge them the new price and will help them with marketing expenses, I will include their logo and mention him as a point of sale in the ads to be published on newspapers.
3) Let them buy less quantity than the minimum at the new price, to test if their end customers still are willing to pay the new price.
In business you need to make money, otherwise you can not survive the up and downs of the trade. Always look for opportunities to be creative, and give your clients options to consider, they wiull appreciate the gact that you want to help.
Vicente Huaman
06 Mar 2008 09:24