Is obtaining distributor pricing from a manufacturer purely based on your order volume with said manufacturer?


This is a Quora question I was asked. My answer is below.

In food/consummables, manufacturers publish their price list, which in my experience does not normally include discounts for volume-based orders.

If volumes are very low, then there may be a higher cost to cover the additional administrative and logistics costs associated with smaller orders, but that is usually done on a case-by-case basis and not normal. If the order is small and requires unique shipping or logistics, which can mean more administrative hand holding, then this makes sense to charge a higher list price.

However, in general, it is easier for the manufacturer to just post its price list and not worry about charging higher distributor pricing amounts for small orders or small vendors because it is more of a hassle to manage that.

When volumes become significant, then the manufacturer can offer discounts on a case-by-case basis.

I post what I see and do in consumer products. But I am just one person with my own perspective. I want your opinion and observations from your point of view. Please comment below so I and others can learn. Thank you!

2016-08-11T09:48:23+00:00By |Categories: Resellers|Tags: , |0 Comments

About the Author:

I am a startup and growth company expert: sold 1, built 5, and crashed 2. I develop, launch and grow consumer products through uncommon methods that can lead to more sales – faster – and can make a company and its products more appealing to consumers and resellers, with less risk. More about me here.

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