The sight of discounts or specially priced goods in a business proposal towards entities will surely solicit a favorable response from them. This becomes the thing that attracts them the most, since in their minds, they are getting good bargains when it comes to getting selling opportunities for their products. In most cases, people have been accustomed to asking for discounts, and seeing this regardless of the net price for the proposal stirs their interest and entices them to study the entire scheme.
For some sectors who really analyze the whole process to the last centavo, being cost efficient is a key factor in making a difference for success and failure of a business. Effective business management also deals with having to consider psychological factors as well as the accounting side of things, especially for cost related figures that will be a telling difference between profit and loss for them. Proposals given will be of course dependent on negotiations and the experience garnered for the whole process. It is not merely about providing special discounts, which for big distributors, is worthless if they would want to hit it big. As an alternative, discounts are tweaked all the more, but in exchange, bulk purchases are encouraged to offset the discounts given, and these practices are often aimed initially at exposure first and external storage of the goods. Besides, price adjustments can be done afterwards, especially once the product has proven its marketability and demand.
Here is a good article on why Consumers say Price Discounts are More Important than Price.
Originally posted on June 25, 2006 @ 11:11 pm