One of my distributors that I just started working with about six months ago called me yesterday with exciting news. He had been given the opportunity to present Slide products into a new facility. The first thing he wanted to do was check and make sure that one of our other distributors or us directly did not already deal with this customer. He knows about Heat Tech Systems Program that we run to protect our distributors on your customers.
If one of his customers where to call me directly or another distributor were to call me asking about his customer I would be able to know. Since I would know I would then price the new distributor at the same price he was paying nothing lower so that he could not go in and steal that customer. If it was the customer directly I would turn them back to the original distributor in this way protecting the business that he worked so hard to accumulate. Once we had decided that this was indeed a new customer. He had a few issues one was the quantity that they wanted.
The customer uses around 40 cases of each product every six months but orders it monthly by about 8 cases. Which is fine but doing it that way he would only receive eight case price. You see Slide has a price guide that all distributor are supposed to follow to keep the market place fair. ( Not every one does but that’s its purpose) The price has three lists the first is list cost that is the end user of the injection molding industry that uses it within there own facility price and it is broken down from 1-6 cases 7-14 cases 15-23 cases and 24 plus cases. Then there is the distributor price this is for re sale and it is broken down by the same brackets. Last there is the master distributor price this is what we use to buy in cases of 1000 or more at one time.
If the customer only ordered 8 cases that is the price he would get for example lets use the 46910 mold cleaner plus degreaser four the list cost is $57.86 each that is if a end user called to order between 1-6 cases. If a distributor called to order the cost would be $43.39 depending on the quantity ordered. What I explained to him was if he could put more than one product together that we do a multi product discount so if he ordered all four items at one time and we could put a skid together we could take his price all the way to $37.95 per case on the 46910 that is a savings of $217.60 over all 40 cases and when you are taking about four products with a savings between $100 and $220.00 that adds up fast.
We offer this same program to end users as well. If we can start to add your different products that all facilities use together in one order the cost savings on the product alone is great. Then you start to add up all the freight that you would spend shipping 5 small orders verses one large order and you have saved your company a ton of money and at the end of the day that is everyone’s goal. We are one of the few suppliers in the industry that does this kind of discounting. A catalog house does not allow for this freedom. Give us a call and we can go over your products you order and how we can save you money ordering the items you are already buying.