Monday, 17 November 2014

WholeSaleThought

Putting this thought about the whole sale prices.

When a consumer like to get discount, can he think why he has to get the discount on that product?
a) Quality of Product
b) Availability of Product
c) Demand of Product

Quality is the one which any one one would not like to compromise. But there is a different sense attached to it. Quality that you see in radio might improve over the time when we see TV now. There is a price attached to each of these products and price vary depends on the time. Radio might cost 1000 rs 10 years back, but the TV might cost 30000 rs. having said that, how can you compare the price between these times. its complicated, but end of the day its demand that drives. then come backs to the question how can i sell this product with larger sales? (answer: discount it)

Availability, is very important if any one want to purchase the product. you go a shop and find that product is not available, will you visit back to that shop again tomorrow? might be unless you are not in much of need that product. what if, the price of the product comes cheaper if you want this after 30 days? again depends, if you can hold on for 30 days and waiting for it. so price will vary based on the availability of the product. then the question is how can i sell this product with larger sales? (answer: discount it)

Demand: if you have high demand then prices will shoot up. but how much the prices will go up? in this competitive world, where you can get a product through several vendors, there is upper cut off for this. lets compare with apple product, will you not surprise if i say the statement that "apple prices are becoming cheaper for every new release". one may argue that its the same price for past 5 years. but for 5 years do you think we are getting the same value for money? as innovation takes place, it will last for very few years unless some one else mimic with better and sophisticated technology. then come backs to the basic question how can i sell this product with larger sales? (answer: discount it)

so we got the answer discount it. but how? see how many people are interested in subscribing to this product.

Lets have an idea on this:
If i go to TV shop now and would like to buy, what price can i get the TV? its 30,000rs. how much i can discount, so that customer can buy? none. why because, i have already committed to the wholesaler for certain sales.
If I would like to purchase 10 TV's from you from 30 days down the line. how much price you can give this? Now you have chance to think of this price,since you haven't committed to the wholesaler, and now you can order it better price.

what are the factors that driving between 1 and 10 TV's? above all & collaboration.

If we assist you in taking the order from the retail customers so that you can actually deliver the products in a future date, where you can negotiate the price and increasing the sale purchase? will you be interested?

lets talk about the business rules.
1) seller has 15 days of period to sell the contracts.
2) contract is an agreement on the number of items at what price and what time?
3) when seller sells the contract, buyer will subscribe to this contract.
4) contract also has a clause on the number of items that were not sold and way to compensate it.
5) this compensation will proportionately decrease to 0, if all the items were sold.

1) buyers can subscribe these products as soon as it launched.
2) buyer has to make payment, if he wants to lock this product.
3) once locked early buyer can get the advantage of discount, if he refers to a friend/ or friend has nominated him to buy this product
4) there will be mega discount, based on the number of items that were sold in the contract
5) On settlement day, buyer has to tell you the delivery date, not more than 15 days.

whats the advantage of this:
1)if you can get the price for 10 TV's at 25,000 as against of 1 TV at 30,000, that discount price can be distributed to the buyers (5000 on each tv has huge discount)
2)other driving factor, recommending others to purchase this, where by getting extra discount in achieving the targeting sales