The Importance of Quantity Discounts in Wholesale

Many wholesale sellers are wondering if quantity discounts are truly necessary when selling wholesale. My recommendation is to think like a buyer, not a seller.

Wholesale sellers would prefer one price for simplicity’s sake and also to achieve a higher profit. Keeping it simple in the wholesale trade is not the best strategy.

Think Like a Buyer

Having been on both a wholesale buyer and seller, I can tell you, that as a buyer, I ALWAYS expected quantity discounts. Buyer’s shouldn’t have to ask for it. I hate negotiations. I expected the manufacturer or wholesale company to have these discounts ready.

But, when I asked for the quantity discount, the answer I heard many times was ‘Tell me which item and I can tell you what I can do”.  Not every buyer is from a country where they anticipate the negotiation as part of the business dealings. I hate negotiating. I always just wanted simple, fast business with clear pricing.

Negotiations Are A Pain

Negotiations are pain in the ass. As a supplier, you should always get rid of all painful parts of the sales process. Why give a chance to the buyer to walk away? Wholesale suppliers should have their quantity pricing readily available and without having the need to ask for it. (Impatient buyers might move on to another seller who has a clear pricing and readily available for the buyer.) That way the buyer doesn’t need to wait for the seller to get back to them. It would allow the buyer to start putting the order together with the quantity discounts in mind.

I used to buy raw materials from other countries. This was before online marketplaces and before wholesalers were even attempting to sell online. The process was like this:

  1. Email the seller to request a catalog
  2. Send seller the product item numbers I liked
  3. Then they sent me prices for those items only
  4. Then I asked to send me their quantity discount tiers
  5. Then they said, which item and how many I want to order
  6. Then I had to send the info, how much if I order 50 or 100 or 200.
  7. Then they sent me the prices
  8. Then I had to ask how do I pay
  9. Then they said send money via bank transfer
  10. Then go to the bank and sent bank transfer.

Holy cow, that was such a long process, I hated it!

No need to make the process this painful. Especially with being around. No need for long negotiations. Either the store already have quantity discounts listed on their main store page or the product page or buyers can get a quick quote from the seller, which can be easily paid online.

Buyer’s Remorse

Another reason I don’t like negotiations is because I feel like, well, could I have gotten a better price if I kept pushing? But, would the seller get upset with me? Would it ruin the relationship? Buyers from a different culture might not have these reservations, but I always had. I don’t believe that I am the only person with these reservations.

Simplify It, Please

No need for complicating things, making buyers wait, making them ask all those questions, make them feel like they could’ve gotten a better deal. Just have your quantity discounts ready, and sell more products.

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