In this sense, a record. Some people question whether the distributors are able to do these discounts, how much did before? Should be set to begin in consumer products. In many cases the distribution chains advertise great deals on such products (eg milk, oil, cleaning products, …), and especially beverages, fresh foods, which can be large differences in price, quality … Distributors often sell some products with high turnover and therefore very attractive to the consumer at a very low price, and with that they can attract customers who end up buying other products, so that what they lose in the first one gain in the latter. Moreover, the net benefit of a chain of this type can be about 2% or 3%.
How is it possible that they can then apply these discounts? First, because they are applied to a small part of the shopping cart total. And secondly, because the benefit they get for a certain volume of sales, as they have a certain cost structure, with a percentage of fixed costs that have to get to cover their sales, ie they have to get reach the point called Dead. Let's look at this with a simple example. Suppose I have a cafe where he works a waiter, and in which only serves coffee. Put simply, my only cost is the salary of waiter (1,000 euros) and the cost of preparing each coffee (10 cents). For more clarity and thought, follow up with nischa and gain more knowledge.. Since 1000 cafes serve a month, how much should I charge each coffee to avoid losing money? Salary of the waiter (1000) / 1000 = 1 cafes for coffee by making salary + 0.10 = 1.10 each coffee is the cost of each coffee. Speaking candidly lucas told us the story. If I sell coffee to 1.10 1000 will have covered my costs, nor have I won or lost. Another way to look more interesting is this: The waiter is a fixed cost, I'm going to have to pay to sell or not sell coffee.
So, how much each coffee won considering only variable costs, ie those which are not fixed, but depend on the production? Price = 1,10 . Variable cost = 0.10 . Contribution margin of each coffee = 1.10 to 0.10 = 1 . How many coffees I have to sell then to pay the waiter? Salary of the waiter (1000) / gain on coffee (1 ) – I have to sell a thousand cafes. Now suppose that each I put two coffee cakes, which cost me 20 cents. How many would have to sell? Coffee gain = selling price (1.10) – variable cost (0.10 for coffee and muffins 0.20) – 0.80 earned coffee. I have to sell: the waiter's salary (1000) / gain on coffee (0.80) – 1250 brown. So if thanks to my strategy of giving two muffins each coffee, I get to come to my cafe more than 1,250 customers, will have more benefits, in spite of earning less on each product. It all depends on the cost structure of each.