How Much Are Price Leaks Costing You

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How Much Are Price Leaks Costing You

How often do you experience one of these situations?

You have a customer who is promising to purchase a large volume in the upcoming year. Over the next 12 months, they intend to buy a significant amount of product over several orders. Of course, they want your very best price. You sharpen your pencil and calculate a heavily discounted price based on the volume promised. However, at the end of the year, you realize that the customer has ordered significantly less than originally promised. You never planned to sell at such a low price for so little volume. Unfortunately, the year is over, and you have little recourse for rectifying the situation without jeopardizing your ongoing relationship with this client.

You have a long term agreement with a customer for 100,000 units at a discounted price. You are at the end of the contract period and the customer has purchased only 40,000 units. Now it’s time to renegotiate the contract, and the customer is expecting the same low price.

What do you do?

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