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Jacob
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Supply Network Guru
Margine and volume sales
Jacob   1/15/2014 10:56:13 PM
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"Margins have fallen from 16.5 to 12.5 in the last eight years, he said, and they are somewhat out of the control of distributors.  "It should be much cleaner for us to set our own margins, because we know the services we set for the customers," Smith said. "We give them terms, days we hold inventory, do programming. We should be in charge of our own margins, instead of suppliers setting margins for us using ship and debit."

suzanne, the effect of such changes in margin can be nullify by volume sales. Normally for large volume sales distributors or vendors used to offer further discount by reducing the margin. For them, they can sell the second product without much effort.

_hm
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Re: Good margin
_hm   1/15/2014 6:46:02 PM
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@Hailey: It happens. One need to take deep breath and move along.

 

Hailey Lynne McKeefry
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Blogger
Re: Good margin
Hailey Lynne McKeefry   1/15/2014 2:40:49 PM
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@HM, i have to disagree. If my boss came and told me that i was going to make four percent less next year, i'd be really unhappy. Even if he said, but even at a four percent loss you are still making a good salary! Loss is loss and less is less.

_hm
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Supply Network Guru
Good margin
_hm   1/14/2014 8:52:32 PM
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As a parts distributor, 12.5% is considered very good margin. Technology risk is minimum and value addition is almost nil. I consider this to be very good margin.

 

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