May 28, 2009
Usually I wouldn’t post even slightly commercial guest blogs from ASI members, but I received the following email from a prominent industry supplier and wanted to pass it along.
From Tom O’Boyle, president of Journalbooks/Timeplanner Calendars:
Between pharma and banking and cut backs from most other companies, we figure distributors could really use some relief.
As a supplier, we wanted to help, so we decided to do something we have never done before: offer EQP on everything, with no restrictions or fine print, through August 31.
EQP refers to ‘End Quantity Pricing’ – and it is the lowest price a supplier can possibly offer a distributor for an item. It is typically the lowest price offered for high-quantity orders.
If our customers have already earned EQP on anther order, then we will provide EQP less 5%.
We are trying to give distributors and their sales people ammo to close sales, even if we sacrifice a bit of our own margin. We have urged other suppliers, and even our competitors, to follow our lead.
Temporary pain for us may help a few distributors do better.