Forums: Discussions for entrepreneurs and small business.

Hi,

 

I did a lot of legwork and found someone who "probably` needs 800 units of my product, however she needs shipping to be included in my price at $x, which I can`t do as I usually don`t ship and have no discount actt with a shipper. So, I have thought it all through, and think that I should refer her to my supplier, calling him first saying I am going to do this, and asking for, say, 10%. By my best research, he makes 33% with every sale he makes (he charges 3.75/unit, so I believe they cost him $2.50). This woman wants about 800. So I think 10% is a good percentage to ask him for. (?thoughts?) Here`s my phone call scenario:

 

"Hi N, it`s L. I have a customer whose needs I can`t fulfill and make a profit. I want to refer her directly to you. If I do that, would you give me 10% of yor profit?"

 

How does this phrasing sound?? I am totally new to this kind of thing, so advice from someone experienced would be very appreciated. I am willing to take a "bonus" in goods instead of cash, and tend to think this would be more palatable to him.

 

Thoughts from people who have been in the same situation and came out with something tangible?

 

Thanks, l

You can always ask.  If it was my business, with that type of volume, I would say "Yes" and hopefully you would find me more customers. 

However, some businesses don`t have that mentality and will keep every penny.  Maybe they have to make the 33% to cover their expenses and to get where they are going.  Maybe if you want a cut of the pie, they will have to raise prices.  

 

Just like if a person went up to their boss and asked for a raise.  The boss may say okay and give the asked for raise.  However, the boss may say that they are already paid enough--maybe too much. But the boss may say yes to the raise, but give a lesser amount than one is hoping for. 

 

I hope you get a piece of the pie!

Hi Lisaveta,

 

I obviously don`t know a thing about your business, but I am curious to understand why you wouldn`t be able to complete the shipping end of this potential sale?  Is the shipment of 800 units going to 800 different locations?  Might it be worth your while to try and position yourself to do the deal and just break even or make a little money in hopes of business with this customer again in the future in a situation that is better for you?   

Hi,

 

My would-be client needs, say, 200 shipped to x, 200 to y, 200 to z, 200 to w. I don`t generally ship, so have no discount account with a shipper.

 

The other fly in the ointment is that my would-be client hasn`t said FOR SURE she would buy 800 from me, just that she MIGHT need them. And I have no secondary market at the moment, so it would be a big risk to order 800 more of these. I already have 180 which I am not sure I can sell all of by my "traditional" route, which is individually, online.

 

The third point is they are a "time-sensitive" item - they are marked 2008. Good luck selling a lot in 2009, etc!

 

A fourth point is they are limited edition, so I can`t order them 200 at a time from my supplier, as there are no guarantees he will have any left in 6 weeks. I would need to buy them all now to make sure I can fill her "potential" orders.

 

Any further advice appreciated!

Hi everyone, well, here`s what I did, and it looks like it`s coming up roses:

 

Called my supplier, got shipping quotes from his locale to all the others, got a promise from him not to have his name on anything they`ll receive.

 

Made a spreadsheet at the various shipping volume points, and marked them all up by 30%, i.e. my profit on any and all resulting orders will be 30%.

 

My client sent an email around to all her franchisees, and there is one that is already promoting it in her town. : )

 

So I feel like i have acheived some level of sales Nirvana...I have a good relationship with a dropshipper whose products I believe I will successfully sell! Now that the spreadsheet is done, all I do now to profit is place a phone call! Beautiful!!!