Selling Honey

[Ely]

I have a customer that wants to buy 10 jars. My usual price is £5 for 12oz or 2 for £9. He wants 10 for £40 making it £4 a jar. Should I be shifting my price? What would you do? Cheers

 

[bingevader]

I think some deal on 10 jars might be fair, but not a quid a jar!

 

[Swarm]

I wouldn't discount for two jars, let alone ten.

 

[Curly green fingers]

Nor me there worth 5 pounds + each tell him to go to the super market it's a £1 a jar there .
My local baker's wants as many jars as I can supply for 5 pounds each 454g jars .
Any one want to sell me 200 lbs of honey . Joking of course..

 

[B+.]

I have a customer that wants to buy 10 jars. My usual price is £5 for 12oz or 2 for £9. He wants 10 for £40 making it £4 a jar. Should I be shifting my price? What would you do? Cheers

Think of it this way, you gave a £1 discount for buying 1 extra jar. He might reasonably assume he could get an additional £1 discount for every extra jar he bought (i.e. the marginal cost fell £1 for each unit he bought - https://en.wikipedia.org/wiki/Marginal_cost). This is where his £10 discount came from.
You started it by offering a volume discount at such a low level. Where else can you get a 25% discount for buying only 10 of an item?

 

[Erichalfbee]

I have a customer that wants to buy 10 jars. My usual price is £5 for 12oz or 2 for £9. He wants 10 for £40 making it £4 a jar. Should I be shifting my price? What would you do? Cheers

No
Tell him he can have one free jar if he buys ten. I supply my local farmers in 3 lb tubs. They pay the same for the honey as if it was in jars. They never complain. It’s a quality product made with love and pain. Don’t short sell yourself.

 

[Beefriendly]

I wouldn't discount for two jars, let alone ten.

Typical Welsh

I'd snap his hand off at £40 for 10...on your offer it's £45.
Big orders ALWAYS get a good discount...they will be back for more.

 

[Beefriendly]

No
They pay the same for the honey as if it was in jars..

Typical Welsh

 

[Erichalfbee]

Typical Welsh

Polish born in Hammersmith

 

[Beefriendly]

Polish born in Hammersmith

Typical Stingy Cockney

 

[Beefriendly]

I think the real answer lies in the amount of honey you have to sell. If you know you can sell all you have at £5/jar then go for it.
If you have generated a good surplus, then shifting it is your priority.

Anyone want several hundred pounds at wholesale prices?

 

[whizzwheels]

I would tend to agree, if you only have a limited supply then it's at a premium so sell at a premium price.
If you have plenty of honey and will struggle to shift it then accept the discount price.
I sell my 12oz jars for £6 a jar but will knock some money off for bulk (10 jars) purchases especially if they return the jars.

 

[B+.]

If you have generated a good surplus, then shifting it is your priority.

Is it?
If you kept it, the price remains stable (supply/demand curve). If you dump a surplus on the market, the price falls for everyone. You see this all the time when an oil producer steps up production. The price falls.
Now...where is the honey cartel? ;-)

 

[B+.]

I sell my 12oz jars for £6 a jar but will knock some money off for bulk (10 jars) purchases especially if they return the jars.

IMHO, you're setting the "bulk" purchase level too low. I would have considered a "case" (72 * 1lb jars) a suitable level to begin talking about discounts

 

[Beefriendly]

Is it?
If you kept it, the price remains stable (supply/demand curve). If you dump a surplus on the market, the price falls for everyone. You see this all the time when an oil producer steps up production. The price falls.
Now...where is the honey cartel? ;-)

Doesn't compute, you run out of storage space. I'm struggling at the moment to find enough room to store the stuff. Buckets everywhere. Even sleeping with some
I doubt dumping the amount I have will cause the honey moguls sleepless nights...they work in thousands of tons...I just work in tons (single). Ergo....no price fall.

 

[Ely]

I don’t have much to sell. Thanks for your thoughts.

 

[B+.]

Doesn't compute, you run out of storage space. I'm struggling at the moment to find enough room to store the stuff. Buckets everywhere. Even sleeping with some
You don't just dump it on the honey market, you sell wholesale. UK cannot produce enough honey to meet demand. Ergo....no price fall.

Strange: your first paragraph paints a picture of over-supply but your second suggests the opposite. Which is it?

 

[Erichalfbee]

Doesn't compute, you run out of storage space. I'm struggling at the moment to find enough room to store the stuff. Buckets everywhere. Even sleeping with some
I doubt dumping the amount I have will cause the honey moguls sleepless nights...they work in thousands of tons...I just work in tons (single). Ergo....no price fall.

Then you have too many bees

 

[Beefriendly]

Strange: your first paragraph paints a picture of over-supply but your second suggests the opposite. Which is it?

No my first paragraph paints a picture of a honey surplus and also tells you I'm running out of storage space. Your previous suggestion of keep it all doesn't compute. So I need to move some honey on, both private sales (more profit) and wholesale (profit).
How do you get rid of the tons of honey your Carniolan honey monsters bring in?

 

[Beefriendly]

Then you have too many bees

Yeah tell me about it.....and they all have individual names......ZZZacharia36785 being the latest born about 30 seconds ago.