We are regularly asked why we don't work with graduated scales. After all, a buyer pays less as he buys more of a certain item. In this article, we briefly explain why graduated scales are difficult to work with for 100% digital ordering. In addition, we explain which solution we are offering in place of ever-decreasing orders.
What are graduated prices?
Buyers and growers often make an agreement about the price that depends on the purchase quantity. A 'supply line' contains several prices in addition to the specifications of the item. For example, it could be specified that an item costs €2.20 if you buy a tray, but you can buy them for €2.10 if buying an entire layer.
What they are used for?
On the one hand, graduated prices are used to charge delivery costs and transport costs for smaller orders. In addition, graduated prices are sometimes used to give bulk discounts (e.g. a lower price if you buy > 10 DC).
Why they don't work in the current set-up?
In situations where a buyer is going to order directly from the grower's supply, these graduated prices don't work well. Buyers have linked their webshop to the supply, with orders being placed in the course of the day. These orders are coming in over a period of time where it isn't yet known with the first order what the order quantity will be at the end of the day. If a buyer allows several end customers to all buy individual packaging units, the total order from the grower can still make up a full trolley. This means the price of the first bargain has already changed because other bargains have followed.
What solution can we offer?
For companies looking for fair charging of handling and transport costs, we have built in the option to add transport costs to the delivery conditions. These costs may include either the actual transport costs or other handling costs. The advantage of this method is that these costs are calculated over the entire order and not over individual bargains.
With this option, a supplier can indicate that a buyer, regardless of the quantity of products, always pays e.g. €14,- per trolley in transport costs. For the supplier, it makes less of a difference whether he orders 1 packaging unit or a full trolley.
In order to support this way of operating, the buyer must be connected to Floriday. In direct purchasing, (My Shop) this is fully integrated. If the buyer connects using the API, he can retrieve this information during the order process. In the older links (including, for example, the VMP) this way of operating doesn't work and a supplier is tied to prices that include transport costs. It will therefore take some time before all buyers are able to deal with this properly.
For companies that are looking for an option to set up a bulk discount, use can be made of the minimum purchase quantity. A grower can find this under 'special offer'.
This indicates that the special offer is only valid for a specific purchase. By supplying the same product twice, a quantity discount may also be given.