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screen printing => Equipment => Topic started by: ol man on February 11, 2015, 05:00:40 PM
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Looking at several new presses - of course everyone gives me list price .. cash up front...
Should i expect to be able to get a discount...
Like when i shopping music gear - i automatically take ten percent of list, as a starting point..
This may be a silly question, Thank you in advance
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Looking at several new presses - of course everyone gives me list price .. cash up front...
Should i expect to be able to get a discount...
Like when i shopping music gear - i automatically take ten percent of list, as a starting point..
This may be a silly question, Thank you in advance
Knowing what I know, I would suggest that negotiating a 5% discount off MSRP would be a more realistic starting point than asking for 10%. Depending on the manufacturer there just isn't enough gross margin for a distributor to give up a 10% discount. Also the buyer can often get more bang for thier buck negotiating discounted or no-charge accessories, options, or a supply credit than they will get from a straight cash discount.
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thanks
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When I sold MHM at the end of the day the discount ranged from 8%-15%
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Adding to P Walsh's cogent observation-
"Knowing what I know, I would suggest that negotiating a 5% discount off MSRP would be a more realistic starting point than asking for 10%. Depending on the manufacturer there just isn't enough gross margin for a distributor to give up a 10% discount. Also the buyer can often get more bang for thier buck negotiating discounted or no-charge accessories, options, or a supply credit than they will get from a straight cash discount."
You might add installation and/or freight as negotiable points.
Michael Jirasek
Anatol Equipment Manufacturing
847-582-1694
mj@anatol.com
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With regards to using freight and install costs as a negoitiation, those are two items that are fixed costs with no margins to give away. I would suggest, as Peter stated, to start at 5% and depending on the manuafacturer and model you are interested in go from there on options or supply package discounts that can save you additional dollars.
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Bull crap on 5-10 %. I would start 13% plus freight, an extra Set squeegee/ flood bar. I would settle at 10% freight and half set of squeegee flood bar. Why.... Cash is king period, freight they get volume discount and you dint want to be the guy that had the press fall off the truck and you have to deal with insurance , flood bars and squeegee are cheap to mfg in comparison to press. Don't be shy, don't be timid and don't be in a hurry .... be honest, reasonable and ready to seal the deal you will come out with a fantastic deal.
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I was told twice, and it seems reasonable, that distributors usually have about a 20% mark up on equipment like presses. Seems like the majority of manufacturers are now open to selling direct... May be your best way to save some coin right there.
You could get a quote on you picking up the freight, but chances are you are going to save very little if anything. Plus in my opinion it isn't worth the extra potential headache of dealing with the freight company if something goes wrong.
Try deciding on your press before a big trade show, contact the manufacturer and see if they may be displaying what you want at the show. Pre buy it see and what kind of deal can be worked out if you take delivery after the show.....
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I was told twice, and it seems reasonable, that distributors usually have about a 20% mark up on equipment like presses. Seems like the majority of manufacturers are now open to selling direct... May be your best way to save some coin right there.
You could get a quote on you picking up the freight, but chances are you are going to save very little if anything. Plus in my opinion it isn't worth the extra potential headache of dealing with the freight company if something goes wrong.
Try deciding on your press before a big trade show, contact the manufacturer and see if they may be displaying what you want at the show. Pre buy it see and what kind of deal can be worked out if you take delivery after the show.....
Best Advice.
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Manufacturers undercutting distributors is a really good way to lose distributors who would likely drop that line and bring in a competitor, Which co-indecently is something I've heard about happening more than a few times over the years. the buyer may win, but may lose local support, if that sort of thing is a concern in your area.
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the buyer may win, but may lose local support, if that sort of thing is a concern in your area.
That is spot on. And something people don't think about all too often.
I agree manufacturers selling direct will hurt their relationship with their distributors, but it is pretty hard to find a equipment manufacturer that won't sell direct these days....
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customers always want a discount you print shirts how many times do you get squeezed for some outrageous discount request.
On the other hand you have the power and the knowledge to apply whatever discount you want if you want. Somewhere in between all that the deal lies.
One sure way to get a salesman to shake your hand and deal is give them exactly what they are asking price wise, they will roll over every time.
The other way is for or walk in a buy ready today position with cash and your discount applied to MSRP, 5% 8% 10% 12% whatever you think is your realistic deal . If you are on the spot ready to buy and they have room to reasonably move the deal will close.
If your discount is too high you will see it in the salesman face and posture because he will instantly know if you are walking out with your cash or walking out with some new equip.
Take your cash and threaten them with an order and see where it goes. ;)
mooseman