Industry sector: Retail and wholesale

Office goods supplier: Pricing policy

Getting the price right is very important. You must make sure that the difference between the cost price and the selling price is enough to cover all of your operating costs, including your own drawings. Remember that the office products sector is very competitive and customers very often buy purely on price. So you will have to price in line with or below your immediate competitors unless you are targeting a niche market that your competitors do not cater for.

While your regular customers may well appreciate the excellent level of service that you offer them, they are also likely to keep an eye on the prices that your competitors charge and take their business elsewhere if they feel they can get a better deal. You might consider offering customers a loyalty card so they can collect points towards a discount off their next order. Perhaps you will offer special deals and promotions from time to time.

Suppliers to the office products sector may include suggested retail prices in their catalogues and price lists. Buying groups such as Nemo produce catalogues that include price lists for different items.

Special offers and discounts

You will probably offer a discount as a matter of course to your business customers. How much discount will depend on your pricing policy and how much local competition there is. You could offer further discounts for buying goods in large quantities or at certain times, for example when university terms start. You might consider a loyalty scheme which rewards customers with free gifts or extra discounts if their order value is over a certain amount. Keep a close eye on any special offers and discounts you do make to be sure that they are working for you. After all, these kinds of promotions might encourage extra sales, but they will also affect the amount of profit you make on each sale.

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