Re: Fw: Clipsal C-Bus Control System

["Jon Whiten" <jon.whiten@xxxxxxxxx>]

This is standard practice - Very high list price and large discount.

Say CEF match your TLC price, this is 98.36% discount.  Now if the
next customer overhears this and manages to get 98% discount,
[probably thinks that this is great news], then he is charged =A324.26.
So what you say?

Well for the salesman, if he made no margin at =A319.90 (sold at cost
say) then he now makes 18% margin (or 22% mark-up if you prefer) on
that sale - note how 98% looks almost exactly the same as 98.36%.

The salesman can therefore make a big impact to the company's bottom
line by manipulating the discount given by only a small amount.


Don't get me wrong, I am neither condemning nor condoning this
practice [and certainly not having a pop at CEF or any other
wholesaler] - it just seems to operate this way.

;oj


On 02/04/2008, Simon Pawson <SimonP1234@xxxxxxx> wrote:
>
>
>
>
>
>
> I've always wondered about cef...
>
> Slightly off topic but I'm lucky enough to be near a TLC and
QVSDIRECT.
> I don't understand cef's pricing:
> TLC 6242Y 1mm t+e cable (lighting to you or me) 19.90 per 100m
> CEF (Doncaster Cable page 34/36 of their PDF catalog) 1,213.00 per
100m
>
> How? It's a shame as they have a wide network and some attractive bits
> but how does the pricing really work?
>
> Thanks,
>
> Simon
>
> .
>=20

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