Tuesday, January 05, 2016

Let the supplier make his margin

I met an old friend who was once a supplier of office equipment to my previous company. He related an incident to me, about 15 years ago, that I had forgotten.

One day, I visited his shop with my purchasing executive to look at some new printers. He demonstrated the printers and quoted a price that was quite inexpensive and the printers were useful.

My purchasing executive tried to press down the price, by stating that he could find any supplier to offer them at a lower price.

I told the purchasing executive. "The price is reasonable. There is no need to press down the price. Let him make his margin. He needs to earn enough to pay his expenses".

I have forgotten about this matter. But he remembered it until today. He was grateful that I was willing to help him at a time when he was struggling to build a business.

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