We are sensitive to price and its reflection of quality. How should we think about pricing for volume discounts of physical goods to retail/wholesale accounts?
We are sensitive to price and its reflection of quality. How should we think about pricing for volume discounts of physical goods to retail/wholesale accounts?
George George Lellis✔CIM Chartered Marketer for profitable brand and business growth ►Food & Drink | FMCG & OTC | Consumer Tech
You should think of bottom-line profit-focused and make a break-even-volume analysis per customer not per product so as to see how you will split the volumes and how you will customise your pricing strategy. The price is highly dependent on the lifestage of the product but if you don't want to sacrifice quality, it is good to consider the GM rate as a constant.
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Please note that for industrial product, these strategies would be different.