{"id":2203,"date":"2013-05-02T15:42:19","date_gmt":"2013-05-02T19:42:19","guid":{"rendered":"https:\/\/www.maximummidrange.com\/blog\/?p=2203"},"modified":"2013-05-03T13:26:17","modified_gmt":"2013-05-03T17:26:17","slug":"how-to-save-37500-or-cost-plus-pricing-vs-list-less-pricing-how-our-clients-benefit","status":"publish","type":"post","link":"https:\/\/www.maximummidrange.com\/blog\/how-to-save-37500-or-cost-plus-pricing-vs-list-less-pricing-how-our-clients-benefit\/2203","title":{"rendered":"How to save $37,500 or Cost Plus pricing vs List Less Pricing \u2013 How our clients benefit"},"content":{"rendered":"

How to save $37,500<\/em>
\nor
\nCost Plus pricing vs List Less Pricing \u2013 How our clients benefit<\/em><\/p>\n

Not to date myself, but this is going to go way back:\u00a0 1991.\u00a0 No internet.\u00a0 Bag phones. Right out of college, I went to work for an industrial distributor.\u00a0 Think old school, sprockets, chains, motors etc.\u00a0 On our desks we had these huge binders of multi-colored pages \u2013 \u201cprice pages\u201d is what we called them.\u00a0 \u00a0\u00a0They sat right next to the ashtrays (seriously).\u00a0 \u00a0Every product we sold, and there were tens of thousands \u2013 was somewhere on one of those pages.\u00a0 This is how they worked:<\/p>\n

Let\u2019s say list pricing on a 25B9 sprocket (size 25 chain, B-hub and 9 teeth \u2013 I can\u2019t believe I remember that stuff) sprocket was $1,000.\u00a0 What you paid for that sprocket depended on the appropriate discount based on the type of client you were.\u00a0 Here\u2019s how it worked:<\/p>\n

List pricing \u2013 0% discount \u2013 you paid $1,000
\nRetail \u2013 10% discount \u2013 you walked up to our counter \u2013 10% off \u2013 you paid $900
\nIndustrial User \u2013 (think factory) \u2013 20% discount \u2013 you paid $800
\nOEM \u2013 your company made machines that had this product in it \u2013 30% discount \u2013 you paid $700
\nWholesale \u2013\u00a0 40% discount \u2013 you bought in quantity \u2013you paid $600
\nDistributor \u2013 50% discount \u2013first step away from the manufacturing chain \u2013 best discount \u2013 we paid $500<\/p>\n

\"Big<\/a>

Big Savings!<\/p><\/div>\n

So you can see that pricing varied with the type of customer you were \u2013 and there were big swings, many transactions and potential mark-ups along the way.<\/p>\n

Jump to today.\u00a0 There are no more price pages (or ashtrays).\u00a0 Often, the big manufacturers (IBM, HP, Cisco etc) work off from MSRP \u2013 the equivalent of List.\u00a0 The client pays essentially a \u201cList Less\u201d price.\u00a0 Take this real example:\u00a0 AB456A \u2013 16 GB ram kit for the HP rx8640, rx7640 and Superdome.\u00a0 List \/ internet pricing on this kit is $40,000.\u00a0 When purchased directly from the manufacturer or a business partner, a client would pay based on a discount.\u00a0 So a healthy discount would be 40%, but let\u2019s go with 60% for the math \u2013 that discount would get you down to $16,000 per kit.\u00a0 We take a basic cost structure and apply a markup that allows us to build our business, one client, one transaction at a time \u2013 not all in one shoot for the moon list price deal.
\nYour cost from Maximum Midrange <\/a>on the AB456A<\/a>? Approximately $2,500. Amount of savings off from list? $37,5000 \u2013 so next time you want a memory price you could call the manufacturer and ask for the 93.75% multiplier… or just give us a call.
\n855-932-6627<\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

How to save $37,500 or Cost Plus pricing vs List Less Pricing \u2013 How our clients benefit Not to date myself, but this is going to go way back:\u00a0 1991.\u00a0 No internet.\u00a0 Bag phones. Right out of college, I went to work for an industrial distributor.\u00a0 Think old school, sprockets, chains, motors etc.\u00a0 On our […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":"","jetpack_publicize_message":"How to save $37,500 or Cost Plus pricing vs List Less Pricing \u2013 How our clients benefit https:\/\/wp.me\/p1Hmkt-zx","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[10,16,1],"tags":[],"class_list":["post-2203","post","type-post","status-publish","format-standard","hentry","category-case-studies","category-everything","category-miscellaneous"],"yoast_head":"\nHow to save $37,500 or Cost Plus pricing vs List Less Pricing \u2013 How our clients benefit - The Maximum Midrange Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.maximummidrange.com\/blog\/how-to-save-37500-or-cost-plus-pricing-vs-list-less-pricing-how-our-clients-benefit\/2203\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to save $37,500 or Cost Plus pricing vs List Less Pricing \u2013 How our clients benefit - The Maximum Midrange Blog\" \/>\n<meta property=\"og:description\" content=\"How to save $37,500 or Cost Plus pricing vs List Less Pricing \u2013 How our clients benefit Not to date myself, but this is going to go way back:\u00a0 1991.\u00a0 No internet.\u00a0 Bag phones. 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