End Quantity Pricing ... What Do You Do?
When you receive end quantity pricing from a promotional products supplier, do you pass it on to your client?
I recently received an interesting email from a promotional products distributor, here's what she asked ...
"I would love to hear your thoughts on distributors who feel the need to extend their EQP to everyone. I love when I meet a distributor and they are so excited that they are getting EQP from a vendor and tell me how they pass it on to all their clients."
Here's my take on end quantity pricing. Passing on EQP can be a slippery slope. On the one hand it may make you look great in the eyes of a client; on the other hand it may significantly cut into your profitability. Plus, I've noticed a trend, often the end quantity net price is only a few dollars less than the net on the other quantity breaks. So, while the client may be getting a great deal, you're not! Additionally, when you focus on price your clients may have the expectation that you'll always lower the price.
Instead of passing on end quantity pricing to all your clients, be very selective! Use EQP occasionally to secure an important order, or consider passing it on as a benefit to your top tier clients, the clients that consistently give you larger orders, repeat business and referrals.
Here's an important thing to keep in mind: Rather than focusing on the price of the products you sell, focus on the service, creativity and marketing expertise you provide. Price becomes much less of an issue when clients see value in your services.
What do you think? I would love to hear your thoughts about end quantity pricing. Do you pass it on to all your clients, keep it for yourself, or just use it occasionally? Please leave your comments below.
Rosalie Marcus, The Promo Biz Coach is a promotional products business expert, coach and speaker. Combining her skills and years of experience in promotional sales, she helps her clients sell more at higher profit margins and dramatically increase their incomes! Get a FREE special report: 10 Big Mistakes Promotional Professionals Make and How to Avoid Them and a FREE Skyrocket Your Sales audio download at www.promobizcoach.com.