Understand The Concept Of Multilevel Discount And Its Function To The Company Principal

post scm 0006 Discounts and price arrangements have an important role. Especially if you run a company the principal should pay attention to the level of satisfication of your distributor in order to remain comfortable partnered with your company. The true-story discount is just a simple price games, could turn into an important card that must be played. This article will help you understand the concept of multilevel discount and its function to the company principals. As we know, for manufacturing companies, definitely impossible to distribute all of the goods that it manufactures goods and ensure it gets to the end user with an intact and on time. Moreover, if the stuff we sell retail in nature and require a lot of customer quantity so that sales can be turned into the desired profit. The production process of the already ribet, will increasingly elaborate sets if we have to think of a way of managing the ever-changing market. To this end, the company manufactures or producers need the role of the distributor. It's just, this distributor against management shouldn't be messing around. Don't forget the fact that the Distributor is a business entity as well, no different from your company. As a business entity, it is definitely a distributor has a need for money. At this point, a multilevel discount will play its role. Because, in addition to the placement of the ring area and the pricing is fair, pas is also required to maintain satisfaction and interest from distributors. To give you a price that fit, then discount Decker is the answer. How the concept of multilevel discount yourself? Actually quite simple. We make sure our peg prices at the beginning. There, the price will be the benchmark price end up in consumers. After that, we give discount in accordance with levels from that distributor. If a distributor that is a distributor of level 1, then became the largest discount discount. At level 2, the discount will be taken from the nominal after discounts at level 1, so on. So, the more players there are in a chain of distributors, will be more small discounts are taken. But the small discount that will align and comply with a fair profit sharing (according to the company's calculations of your course). As a result, the company's principal you will be able to maintain a good relationship, obviously, and fair with the distributor. Illustrations in short like this: the unit price of product A is Rp. 5000,-then you have a distributor that only stands at one level (from distributors that directly to you the consumer), and then you give the discount level 1 by 10%, the price A product to the distributor 1 is Rp. 4500,-In the other cases, the price of a unit of product A is Rp. 5000,-then you have the distributor consists of 3 levels of (your company-distributor distributor 2-3-4-consumer distributors). In these conditions, your company has 3 importance: (1) keep your product prices in the market in order to remain acceptable to consumers, (2) keep a good relationship with distributors, and (3) maintain your profit margin. For that you have to use the concept of multilevel discount to your distributor. For example, level 1 (approaching consumer) is 10% and for the next level remains 10%. Then the price you give is Rp. 4500,-for 4 distributors, Rp 4.050,–to distributors, and Rp. 3645,-for distributors 2. With the fair pricing in front like that, you will be able to keep the margin of each distributor (which makes them satisfied working with you) while keeping the price of your product in the market. Of course, a consequence of the more level distributors that play is make your margin is getting smaller. For that there must be a business decision that you have to take (if you are part of management or sales people) is the most top-level distributors decide how much the company provided and how much discount will be given to each level. Of course, the decision of how much in level distributors must look at conditions in the field, how easily your products are absorbed by the market. Because as I tell in the beginning, sometimes the ability to sell products not owned by manufacturing companies, but by the distributor itself. That was the last bit of the concept of multilevel discount. May be useful. If you have questions, just pass through the comment box. Thank you.

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