Comments
View Comments: newest first | oldest first | threaded
Page 1 of 2   Next >   Last >>
Jacob
User Rank
Supply Network Guru
Re: Market growth rate vs the reduced margin
Jacob   2/4/2014 10:34:29 PM
NO RATINGS
1 saves

"As I once observed at a former employer, we lost a buck on every part we shipped, but we made up for it in volume."

Elderg, the effort for selling one piece and thousand pieces are same. So they can offer a better price for volume sales.

Eldredge
User Rank
Supply Network Guru
Re: Market growth rate vs the reduced margin
Eldredge   2/4/2014 9:28:30 PM
NO RATINGS

As I once observed at a former employer, we lost a buck on every part we shipped, but we made up for it in volume.

Jacob
User Rank
Supply Network Guru
Re: Margine and volume sales
Jacob   2/2/2014 11:06:56 PM
NO RATINGS
1 saves

"Yes as long the market is not a monopoly one there will be many options for many buyers. It's the competition for the sellers not the buyers."

You are right Nimantah. Due to competition, customer can have a better price too.

nimantha.d
User Rank
Supply Network Guru
Re: Margine and volume sales
nimantha.d   1/31/2014 10:57:50 AM
NO RATINGS

@Jacob: Yes as long the market is not a monopoly one there will be many options for many buyers. It’s the competition for the sellers not the buyers.

Jacob
User Rank
Supply Network Guru
Re: Margine and volume sales
Jacob   1/30/2014 11:23:52 PM
NO RATINGS
1 saves

"i agree with you...i was talking about the other directions. prices going up are what put customer's on edge. :)"

Hailey, customers always have 'n' options to get the products at a better price. Negotiations, sourcing from alternate sources etc are some of the feasible methods.

Hailey Lynne McKeefry
User Rank
Blogger
Re: Margine and volume sales
Hailey Lynne McKeefry   1/29/2014 1:31:36 AM
NO RATINGS

@Jacob, i agree with you...i was talking about the other directions. prices going up are what put customer's on edge. :)

Jacob
User Rank
Supply Network Guru
Re: Market growth rate vs the reduced margin
Jacob   1/26/2014 11:01:18 PM
NO RATINGS
1 saves

"In my opinion, the reduction in margin can be countered by having increased sales so that the net profit remains same."

Prabhakar, that's one option. Certain vendors are fixing margins in lot. I mean first lot certain percentage, second lot less margin than the next etc. so volume sales are beneficial for both customers and vendors.

Jacob
User Rank
Supply Network Guru
Re: Margine and volume sales
Jacob   1/26/2014 10:58:50 PM
NO RATINGS
1 saves

"Distributors are quite sensitive to margins and margin changes--and sometimes margin decrease can't be passed on readily to price-sensitive customers. I bet this is one of those "easier said than done" moments."

Hailey, most of the distributors are using dynamic pricing method so they can always keep a certain margin on all the sales. When price decrease, they can pass such benefits to customers and vice versa.

Hailey Lynne McKeefry
User Rank
Blogger
Re: Margine and volume sales
Hailey Lynne McKeefry   1/24/2014 7:46:15 PM
NO RATINGS

@Jacob: you said:
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.


Distributors are quite sensitive to margins and margin changes--and sometimes margin decrease can't be passed on readily to price-sensitive customers. I bet this is one of those "easier said than done" moments.

prabhakar_deosthali
User Rank
Supply Network Guru
Market growth rate vs the reduced margin
prabhakar_deosthali   1/17/2014 6:32:12 AM
NO RATINGS

In my opinion, the reduction in margin can be countered by having increased sales so that the net profit remains same.

So to get the correct forecast of the coming year we need to know what is the growth rate of the component industry. If the growth rate is more then the distributor makes more profit in net terms though not in percentage terms.

Page 1 of 2   Next >   Last >>




Datasheets.com Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)
EBN Dialogue / LIVE CHAT
EBN Dialogue enables you to participate in live chats with notable leaders and luminaries. Open to the entire EBN community of electronics supply chain experts, these conversations see ideas shared, comments made, and questions asked and answered in real time. Listed below are upcoming and archived chats. Stay tuned and join in!
Archived Dialogues
Live Chat 8/20: Supply Chain Trends to Watch for the Rest of 2014
The supply chain hasn't quite reached the complexity of global phenomena like weather. So we've asked Jim O'Reilly to predict trends while answering your questions.
Live Chat 7/24: Effective Channel Management
Joe Alphonse and Tom Howell of Revitas discuss how to implement an effective channel management strategy.
Latest Poll
The Velocity Report Archive
Click here to see our newsletter archive.
EBN Newswire
VÉLIZY-VILLACOUBLAY, FRANCE   7/24/2014
Dassault Systèmes to Acquire Quintiq
THIEF RIVER FALLS, MN   6/26/2014
Digi-Key Employees Advance Education & Employment ...
Twitter Feed
EBN Online Twitter Feed