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The Economics of Your Offer

A ceramic basin offer affects more than the unit purchase price. Compare how product fit, quality, packing, flexibility, delivery, payment terms and support influence your margin and cash flow.

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The Economics of Your Offer infographic
Eight parts of an offer. One view of margin and cash flow.View full size

Eight parts of the offer.

Price

Start with the unit purchase cost. Then review it alongside the other parts of the offer so you can compare the cost of buying, stocking and selling the product.

Product & design

Consider how the range fits your customers and assortment, and its selling potential. A product's place in your range matters alongside its purchase price.

Quality & consistency

Review the quality requirements and the consistency expected across the order. Consider the possible costs of returns, markdowns and rework.

Packaging & loading

Compare packing cost, freight per unit and the risk of breakage together. Confirm the packaging and loading arrangements included in each offer.

Order flexibility

Check how the ordering arrangements fit your stock needs. Order flexibility can affect stock levels and the amount of cash tied up in inventory.

Delivery

Consider delivery arrangements alongside the costs of stockouts and buffer stock. Match the offer to how you plan and replenish your range.

Payment terms

Compare when payments are due and how that timing affects cash flow and financing cost. Include payment timing in your comparison of offers.

Service & protection

Review the support and claim arrangements in the offer. Consider both the staff time needed to resolve an issue and how claim recovery would work.

Terms agreed per order.

Let’s discuss your next order.

Andy Quan

Vice President Sales · Everson

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