How to set a target price for street light pole manufacturers on your import business?
A target price can help streetlight pole manufacturers well budget the manufacturing cost, cost of material, management, and material fluctuation risk. A well-set target price can help streetlight pole manufacturers put your inquiry on a more important list, they’re sure your inquiry is a firm inquiry rather than a non-firm inquiry and time waster, also while you’re calculating your target price you’re sure what kind of price you should offer to your clients especially when you’re a wholesaler trader.
There may be a situation in which you don’t have a target price because your client doesn’t give you one and you’re in the role of a wholesaler trader, how do deal with this situation? Firstly, you need to run market research on your local market where your client could buy from, how does a product of the same type cost? Secondly, expect what price your client would generally accept. Generally, 5% to 10% lower is optimal. After you get the price of the goods of the same type in your local market, you already have the price to offer to your clients and the target price to give a streetlight pole manufacturer, so when your client accepts the price you give to him and streetlight pole manufacturer accept your target price, business is done. So what would be the target price then for street light pole manufacturers on your import business? Which is Generally the price you give to your client reduced by 10% for for-profit and 30% for shipping, customs, and tax, etc. The 10% profit is a base profit because you can still get more profit from 30% shipping, customs, tax cost which actually would not cost so much.
What if you’re a direct buyer? If you’re a direct buyer, setting your target price is simpler, just get the price of the goods of the same type in your local market, reduce 5% to 10% for the reason you want to import the goods, and further 10% your general profit and 30% for the shipping, customs, and tax, Then it’s the final target price you would like to give a street light pole manufacturer.
Different from a street light pole wholesaler who only sells what they have in the warehouse, a street light pole manufacturer produces what customers want. There may be a situation in which a street light pole manufacturer can’t produce the product because of workmanship, technology, and high cost due to lower quantity demand from customs, under such condition a street light pole manufacturer would suggest what they can produce to you concerning the product you want.