Get The Flexible Hose PO
We are facing a problem because our minimum order quantity was 3000 pieces each, but the customer requested only 1500 pieces for the trial order—and 2000 sets of 5-way fittings. Our salesman Kevin discussed this issue with senior management twice, but it wasn’t solved. The reason is due to a 50% reduction in quantity; our production cost increased by 5.32%
Ciaran has agreed to increase the price by 2%, and we decided to produce the requested quantity. After a week of negotiation,
We thought there were no other twists and turns in the fourth stage, but things are not always as simple as you think. We got an email suddenly after Ciaran confirmed the PO. He said they forgot to mention their packaging requirements. They needed color box printing with their logo, and they also required fumigated wooden pallets.
So we have to contact the project manager and production manager for discussion. Here, we analyzed the situation for the PO. The most challenging thing was printing the color box because the quantity was too small, and the second was the cost would be much higher.
heating flexible hose
We decided to take two steps: first, we sent the sourcing manager to the carton factory to communicate and find the best solution. In the second step, Our production manager verifies the packaging cost, including the fumigated pallets course.
Mr.Kevin got the final result two days later. The carton factory agreed to produce but had to pay a 2000 RMB plate fee. All packaging costs will increase by 4000RM. The overall cost relative to the purchase price increased by 3%. Kevin and Plumberstar’s top management have a heated discussion. There are three options: Let customers increase costs. 2. we can afford the cost 3. Cancel the PO. Mr.Ciaran confirmed they need more time if they change the contract again. It’s due to and signed by the supervisor, project manager, and finance procedure, which would take about 14-21 working days to go back and forth, delaying the whole project’s delivery time.
We expected subsequent orders, so we decided to bear all the costs ourselves after repeatedly weighing them. If the price is all on our own, including the previous loss, the profit status of this batch is 0, but this is only a trial order.
That’s how we started the official cooperation.
Our summary does not count short-term gains and losses. We consider the business to relate to both sides, a long-term win-win to a virtuous cycle—more consideration for customers’ interests to strengthen the foundation.
