Sell High Buy Low!

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Well folks, this is a statement that is well received in the reseller world. The objective in a reseller environment is to buy as low as you can and turn around and sell it for maximum profit. I agree with this concept on a certain level but there are some underlying morals that I take into consideration determining a sell price.

In today’s economy competitive pricing is the first thing any purchasing agent will consider. The bottom line and the relationship at hand between the sales person and buyer are two factors that will determine aggressive decision making. So many of my customers react to relationship first and then they will take that magnifying glass and take a close look at the bottom line price. When I am pricing items for a customer I consider several factors.

1.Customer spend over the last 6 months.
2.Is the customer fishing elsewhere for a better price with a competitor?
3. Loyalty as a first right of refusal on quotes.

All of these factors will determine competitive pricing for my customer. Supply and demand will never play a role in pricing with loyal customers. Price gouging is not a very effective way of doing business. Loyal customers will soon be lost customers.

A wise man once taught me After all, Never bite the hand that feeds you!

  • Lee

    NO, NO, NO – in times of financial hardship, smaller businesses need all the repeat custom they can get (no use in making a quick profit here and now, when tomorrow you’ll be struggling to make a sale!).

    We sell our products at over 25% off manufacturers RRP – while our competitors are making huge profit margins but have expensive overheads to match.

    Our business supplies office furniture to other businesses and to the home office user – and we appreciate that office furniture ain’t gonna get repeat custom week in, week out. But we know that we’d rather sell little and often and be recommended to others for providing great value quality furniture, and ensure that people come back to us in two or three years time as loyalty for great service!