Australian Newsagency Blog

A blog on issues affecting Australia's newsagents, media and small business generally.

Make sure the discount you get is real

Mark Fletcher
August 18th, 2014 · 1 Comment

Comparing buy prices with a newsagent recently we discovered two different wholesale prices for the same item. The comparison came about because they said a supplier gave them 15% off wholesale while I am getting 10% off wholesale for the same item.

I pay $10.80 at a 10% discount off wholesale while the other newsagent pays $11.22 after a 15% discount. Both prices are ex GST as the wholesale is ex GST.

The 15% is off an inflated wholesale. I’d say its is inflated to enable them to be told they are getting 15% discount.

This is no discount at all.

Where you are offered a discount, make sure it is off a verifiable (preferably published) wholesale price that applies to everyone. A discount off an inflated wholesale price does not help your business.

Footnote: beware of those who argue against this as they could use smoke and mirrors to defend you being charged more in real terms.

7 likes

Category: Newsagency management

1 response so far ↓

  • 1 Jeff // Aug 19, 2014 at 11:24 AM

    I see this happen at the gift fair. The newsagent paying the higher price was to happy.

    0 likes

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