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why can‘t you quote based on pcs and charge based on weight ?

Updated: May 21, 2023

Hi Casey,

This post is for you !

What you asked is basically this: you should give me better price, if there is more items in one order!

You asked a very good question, which shows that you are a very smart person. Because many people are very concerned about this question! We will explain it now. Simply put, you want us to provide pricing based on SKU/PCS, but you want to make payment based on the order/weight, which does not work becasue:

  • The above quotations and payment terms will make your and our financial work extremely complicated and troublesome, as both of us need to manually calculate the shipping costs and final prices for each order that contains multiple products. I am sure both you and us do not have the time and energy to do these things. What we actually need to do is focusing on marketing and try to generate more orders.

  • Based on the price quote and payment terms you proposed, it would result in us not making any profit or even incurring losses, which would prevent us from providing you with quality service. This is just a simple math problem, and I believe you understand it at a glance. The below charts are based on cost of USD8.5/pcs, and quoted at USD10/pcs. And we reduce the price if there is more items in one order. Let us compare our profit rates under two situations.

-our net profit rate based on sku/pcs

-our net profit rate based on quotation (sku/pcs) and payment(order/weight)

The calculation results show that if we charge based on the weight of the order, our profit margin will decrease to an unprofitable or even loss-making price; in order to maintain a normal profit, we will have to increase the price of each product, finally you will find no matter what quotation and payment method we use, the cost for you is similar.

  • Our ERP system generates invoices based on sku and does not support generating invoices based on product weight.

  • When we give the quotation, we have already take this situation into consideration: some customers will buy more than one pcs.

Actually, 99% drop shippers and agents agree on the sku based payment method, This is the best and most efficient way!

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