“Well Done James” – why list prices aren’t always what they seem

What are your thoughts regarding product list prices – are they old hat? Are discounts against list price sometimes illusory or deceptive?

The reason we’re asking these questions is because there have been a number of occasions when one of our new young salespeople, James, has been told that we’re too expensive to buy from because we only offered them a 57.5% discount, as opposed to another supplier who offers 62%.

We explained to our new salesman James, that in actual fact the discount against list price is meaningless unless both suppliers have the same list price, which of course they rarely do.

We definitely made the right choice with James because he got straight back on the phone and spoke to every customer who had told him that he was too expensive and asked them if they would let him price a recent order they had placed with a competitor at our 57.5% discount against list price – eventually he found a customer who agreed to give him a go.

James was sent a copy sales order from the customer with the cost prices and totals blanked out. It was a typical order for our industry – Nylon Shelving, 4 Tier, two bays of 1200 x 600 and two bays of 1500 x 600, he got his calculator out and went to work.

James’ pricing for our Firmashelf Nylon Catering Shelving made here in Knaresborough looked like this –

2 x 1200×600                      £80.33 per bay                   Total Cost £160.66

2 x 1500×600                      £90.95 per bay                   Total Cost £181.90

So in total our quote came to £342.56

Now James needs to be careful in believing everything he’s told but the feedback was – “Yours is cheaper by nearly £25.00”

So what’s the best deal, 57.5% off List or 62% off List? Well James has learnt that it depends on what the list price is, but needless to say he has received his second order off his ‘new customer’ this week.

Well done to James and his ‘new customer’ for having an open mind and trying something new, as it really was win-win for everyone!

Now here’s payback for being patient and reading through this case study, any order you place between now and the end of August 2016 for any of our Firmashelf 5000 catering shelving range will be discounted by 60% instead of 57.5% as long as you use the following code on your PO “WELL DONE JAMES”

At 60% discount, James’ recent sample quote would have been –

2 x 1200×600                      £75.60 per bay                   Total Cost £151.20

2 x 1500×600                      £85.60 per bay                   Total Cost £171.20

Total Cost £322.40                 

If you want a quote on any of our shelving using “WELL DONE JAMES” please call James (or any of his colleagues) on 01423 796 200

OR

If you want a copy of our latest shelving brochure so that you can work your net price out yourself, please click here.