It would be no secret to many businesses out there, that bulk orders will always be the greatest source of income. When people are willing to invest and purchase in a larger than usual order, then you are bound to increase your business significantly more than average. This is the day that every business appreciates.
There are many reasons that a bulk order can be a difficulty for businesses though. The main aspect being the transportation of the order to begin with. The cost of shipping items in such a large quantity will always be the biggest expense for both the customer and the business. And if you are the business owner, then you will not want to cover the costs yourself.
So, you must draw a fine line between home much of a discount you can give with a bulk order. You cannot give a large discount to the point it will begin to eat into the profits, especially if the deliver cost will not cover the additional. When you calculate the actual weight of the materials when you are shipping the products and the distance of the shipment itself, you start to see a significant increase in the cost of the order itself.
However, the point of a significantly large bulk order to the point you can begin to offer a discount, you should still see a significant profit margin altogether. That is why a bulk order should only be done when you are aware that a significant profit margin is still existent after the discount itself.
You also need to be aware of the discount amounts. IT’s always smart to go around the 5-15% discount, and no further than that. If you begin to give too high a discount, you start to see a drop-in profit. Especially depending on the actual mark up of the product you are shipping. We have a tiling Adelaide based company that bulk orders, and they benefit greatly from our supplys!