When we give a price quote request from potential clients, we would normally get a response asking us if we could still lower the cost. We try to make them understand by explaining the reason behind the price we quoted them. We thought it would be best if we let people understand how we price our lanyards.
We have listed down the main things that we consider when you ask for a quotation.
The Material that will be used
In most cases, the price of a product will largely depend on the product or its raw materials. The lanyard business is not any different at all from these other business. If the main raw material that we will be using is expensive, then you can expect that the price of the by-product is going to be more expensive.
It does not make sense that our cost will be higher than the total revenue of our product. That will be loss on our end.
For instance, polyester costs more compared to nylon or cotton, this means that lanyards made from polyesters are going to be expensive than nylon.
The complexity of the design of the lanyard
When it comes to making lanyard, the more complicated a design is the more effort that we will exert on it. If it requires more effort that means that we have to spend more time on it.
Time spent in making a product comes with a certain price. In some instances, we might even have to hire an expert or employ a new technology just so we can deliver the kind of result that our client would like to get.
The Length of time to make the product
Some clients would place an order with us with a very short notice. This means that we have to work double time in order for us to fulfill the request of the clients.
We do not decline a rush order from a client for as long as we still have a reasonable length of time to deliver them the products. In cases where in a client places an order with us and expects the delivery to happen beyond our standard time frame, we may charge an additional fee.
The reason behind it is we may have to hire additional workforce to finish the order or we may ask our team to extend beyond regular office hours.
The Quantity of the Order
Our price also depends on the quantity of order from clients. We give a lower price for bulk or wholesale orders from our clients. We are happy to lower down our margin of profit for clients who will be placing a bulk order.
If you noticed, companies provide a discount to their wholesalers because they can afford to get a lower profit from them. Say for instance that a company is selling a product for $5. It costs them $3 dollars to create that particular product. If you buy 100 pieces of their product, they get $200 profit.
Now, for instance if you change the quantity to 200 pieces and you haggle the price to $1. Chances are they might agree to $4 price for as long as you order at least 200 pieces.
The reason behind it is both scenarios still give the company a total profit of $200. This is the reason why it is always cheaper to buy a bulk of lanyards.
We have some clients who would like to add accessories on the lanyards. What we only provide are the standard attachments and if you require other attachments then it will be added on top of the base price.
Shipping or Delivery
Standard shipping will cost cheaper compared to express delivery. Standard shipping takes longer compared to express delivery. If you request for express delivery, we have to pay a higher fee to get the items delivered to you in the quickest possible time.
We normally look at these things before we give a price quotation for our lanyards.
Lanyard product are one of the most useful inventions today, but people tend to forget how incredibly useful they are and how easy they make daily life.