When pitching our business we find potential customers don't always grasp the commercial benefits provided by our logistics service - they always try to compare us to factory price per item (i.e. you sell widget for 19c whilst I can buy it for a competitor for 17c). But they fail to then think through the fact they must buy a container (i.e. 100,000 widgets) of the widgets at 17c, stock them in Australia (it may take 12 months to sell a whole container of widgets) & manage replenishment themselves in Australia.
Yet for an extra 2c (in this widget example) they can buy much smaller quantities from us (as we bear the costs of warehousing large inventory levels in China) - i.e. they can buy a carton (i.e. 10,000 widgets) of 1 product & fill up the remaining space in the container with many other product we stock. Deliver the container straight to your retail outlet, unpack the products directly to your shelves and sell them without having to bear any additional costs for local warehousing, inventory management, logistics, etc.
Retailers can order 1 container a year or 1 container every 2 weeks depending upon how much product they sell/move through their retail outlet.
Any product of ours will be more expensive when compared against a competitors identical product - BUT we need to communicate the commercial benefits that extra costs delivers.
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