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 What kind of a discount should I give restaurants on volume orders?

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AHVincent

  • Total Posts: 2
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  • Location: Pattaya, XX
What kind of a discount should I give restaurants on volume orders? Wed, 08/14/13 9:12 PM (permalink)
What kind of a discount should I give restaurants on volume orders?

I'm starting to sell to restaurants I I don't know what price structure to use...

Product are Kosher dills and artisan jams and various canned products.

Does this structure make sense or is it too expensive?

"The discount for volume is 15% per case of 12. If you buy 2 the discount is 20% and 3 and more is 25%."

I have no idea and looking for feedback about how much discounts to give, any help appreciated.

Cheers!

Bruno
 
 
#1
    Dr of BBQ

    • Total Posts: 3716
    • Joined: 10/11/2004
    • Location: Springfield, IL
    • Roadfood Insider
    Re:What kind of a discount should I give restaurants on volume orders? Wed, 08/14/13 10:25 PM (permalink)
    My first thought is "HOW GOOD IS YOUR PRODUCT?" Then what is your price compared to others of the same quality. I don't think anyone can make a judgement call without a lot more information.
    Jack
     
    #2
      daddywoofdawg

      • Total Posts: 299
      • Joined: 2/23/2011
      • Location: Starkweather, ND
      Re:What kind of a discount should I give restaurants on volume orders? Thu, 08/15/13 8:17 PM (permalink)
      so if i buy 12 cases they're free?how much of a mark up?25% is most peoples profit.
       
      #3
        MetroplexJim

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        • Location: McKinney, TX
        Re:What kind of a discount should I give restaurants on volume orders? Fri, 08/16/13 9:09 AM (permalink)
        Generally speaking, 20% of your gross profit margin with no attribution for overhead.
         
        Example:  if your COGS is 30%, gross profit is 70%; so, a 14% discount off your wholesale price for bulk orders would probably yield a 20 - 30% increased margin for your customers.
         
        And, be certain to set the "bulk" purchase requirement high enough so that your core business still covers overhead. 
         
        #4
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