When making quotations, what’s our most concerned factor? What will make you change the quotation? Products’ styles? Colors？ Configurations? Quantities?
Let’s talk about how quantity influence the quotations.
Generally, when customers ask for quotations, the first thing we ask is the quantity they will place so that we can decide the price.
However, some customers will not place the same quantities of goods eventually as what they tell us when enquirying. In general, they will place less quantities of goods. Their purposes are to know our bottom price or to have some discounts. This is a kind of purchasing strategy and skill. Some of them do place enough quantity of goods but they will turn it into small wholesale of different models like one of my customers did:
We only do FCL so we have strict requirements towards combined models in container. We allow 3 models mix one container at most so that we can have advantages on material purchasing and lower the purchasing cost to offer a better price for the customers.
For my customer, unlike other customers, he didn’t negotiate with us about the price but the style and quantity. He wanted 5 or 6 styles of products in one container. However, it was really very few quantity our goods can load in a container. If mixed five to six models, we can only have 200 to 300 per model, which had increased great pressure on our material purchasing as our profit was really low. Although this customer did place order, he had created many troubles in the mixing models problem.
At the beginning, I didn't realize the importance of quantity to each model and the whole order, so I didn't emphasize to the customer how is the price base on the quantity of each model which had led to the failure of receiving this order. After double checked with the price, we found that we can hardly balance the cost. I lost this order.
So when making quotations, we cannot only consider how many quantiy they will purchase, but also the quantity of each model in case of getting fooled.