Trade discount?

[Davek0974]

Is there a generally accepted range of discounts for trade sales, that might be based on the value of the item?

i.e. I have a range of products and the costs seem to work ok at the lower end of the scale and 30% discount, but i also have some higher value items and if i cost them up at the same rate - cost x 3 and give 30%, it works out that I am under selling my product but I am pretty certain the product simply would not sell at the higher rate - I would expect the limit to be around £399 but cost x 3 and give 30% shows me that the RRP would need to be around £645 - too high.

Is there a lower discount for higher value items???


Thanks

 

[Ashley_Price]

How much you sell the items for and what discount you give is entirely up to you.

I am pretty certain the product simply would not sell at the higher rate

You don't know this until you try it. Try different discount levels and see what happens. You may be surprised at how much some people are willing to pay. Don't give a higher discount than you need to.

 

[Davek0974]

How much you sell the items for and what discount you give is entirely up to you.

Ok, thats pretty much what I guessed, my thoughts were based on what seems to be the norm in the day job where 33% rising to 50% seems to be the range, that is for items in the £10-£50 RRP bracket though.

You don't know this until you try it. Try different discount levels and see what happens. You may be surprised at how much some people are willing to pay. Don't give a higher discount than you need to.

My feeling is based on my own research on similar product, no point in trying to enter a market with a product that is priced seriously above the competition, unless it's gold-plated or something?

 

[MBE1]

Depends on how you sell an item, I've sold the exact same item anywhere from £2300 to £4750, when many competitors sell as low as £1500.

There is a difference however between selling and simply allowing someone to buy as in a store.

 

[Davek0974]

There is a difference however between selling and simply allowing someone to buy as in a store.

Yes, I know that now, I would be in the second category there as I am a 1-man band and cannot do the hard-sell to gain the big returns as I spend most time designing and building the products.

I feel "Selling" the product would require a salesman - someone who is entirely focused upon getting the best price, I cannot spread that thinly

 

[Gecko001]

When you say "trade discount" do you mean selling to the retail trade as opposed to selling direct to the customer (from workshop or online)?

 

[Davek0974]

When you say "trade discount" do you mean selling to the retail trade as opposed to selling direct to the customer (from workshop or online)?

Yes, I have a small retail outlet interested and the first question was 'what is your trade discount?'

 

[Gecko001]

You seem to have two types of products. The lower value product which you sell with 30% discount to the trade and the higher value product which you cannot really give a discount of 30% because they requires more design work on them etc. Perhaps you just have to accept that this second product needs more work done on it with regard to streamlining design/methods etc. before you can start to sell it at a good return. I would not reduce your discount on this product just to sell it because that is really just buying work. Perhaps you need to keep asking for the price that you need for these higher-value items and accept that you will not sell many of them at this minute and while doing that continue to develop their production.