Monday 17 May 2010

Too Cheap?


It is still possible to be selling products too cheap you know?
I know of garden centres who went for a cheaper option in compost this season by switching suppliers. They had no serious competition close to them but after comparing prices they went with the supposed 'Value' option. That's all well and good but it means less profit on every sale, and on a volume line like compost it can turn in to huge losses.
I have advised clients not to change just because a supplier is cheaper UNLESS YOU CAN GAURANTEE MORE SALES TO OFFSET LOSS OF PROFIT. Something that the compost suppliers can't get their head around.
So don't change suppliers for the wrong reason. Think before you switch.
Contact me for more information.