Less purchasing cost / One shop buying
One new client, with whom we dealed the 1st order at end of 2010, often complained that our pricings were high. But we knew the pricing level of the client involved country. Anyhow, to satisfy the client, for one order of early of 2021, we gave pretty competitive pricings, but the client still complained they were high.
Then we called the client to get the reason. Finally we got that the client bought Iron&Steel products from another province, but Stainless steel and aluminum products from us, while he had to manage deliveries from 2 ports.
Therefore, we got the real reason that various purchasing from different suppliers made the cost higher.
Then in the later days we carried out lots of research in the iron&steel parts and persuaded the customer to check our offer, by no matter fob term or cfr term.
The client compared and decided finally that he bought the full range from us. And from that order, we didn’t receive high pricing complain from this client.
Because we both knew that at a same range, one shop buying would be less expensive than 2 or more, because it took one delivery.
For each supplier, the client needs to think about time and cost to control the quality and delivery.
Anyhow there will be purchasing cost on each supplier, and then the total cost will be higher.
So we would like to integrate the source to provide the client with as many products as possible, to decrease the total purchasing cost.