What kind of discount should you give a distributor who buys your line of apparel?
We have a line of accessories, and a distributor wants to buy a medium-volume order. Should we give him a better discount than we give our retailers and, if so, how much?
Join us at Entrepreneur magazine's Growth Conference, Dec. 15 in Long Beach, Calif. for a day of fresh ideas, business mentoring and networking. Register here for exclusive pricing, available only for a limited time.You may want to give him an initial "trial" offer, but remember--every time you discount, you take money off your bottom line. Is there a way to add value to the transaction, giving the distributor better terms on the back? Or a way to help the distributor move the product once it is in the distributor’s hands?
My thinking is, if your retailers catch wind of your "discount," you may end up having to discount more than a medium-volume order, which can really wreak havoc with your profit.
Another option is just to stick to your high-volume orders, keeping in mind where your true target market really is.
All the best. Brad Sugars.
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