When customer reach to me for an immediate discount of 5 % , I will do cost analysis calculation to know how could I correct the loss that i have to bear for such immediate discount and there shall be win win situation for both the parties.
The desired goal may be achieve through following ways :- 1. Sales must be increased at least 30 % :- One of the way to correct the loss of supplier for discount is to increased the sales. Suppose earlier there was a margin of 10 % on cost for supplierEarlier there was about 40 % supplies done to the customer. It may further be increased upto 70 to 80 % . 2 . Manufctuter need to be placed neraby to reduce transportation cost :- In current situation manufacturer is almost placed at a distance of one and half hour that ultimately cost the supplier. It should be a matter of great cost reduction if it shall be replaced nearby half an hour from suplier. 3. Advanced and huge orders give advantage of scale :- If the customer ordered the supplier in bulk than it will give the supplier advantage of scale in raw materials. As he ordered in huge bulks so that he may also ask for heavy discount from his own supplier.