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The end result is a much lower price than what is considered reasonable. This can be difficult advice to follow, as you may be afraid of being considered a jerk. Many sellers know that ridiculous offers are part of the negotiating process and are very unlikely to refuse to make the sale.

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Give a reasonable price that makes sense, and they will beat it. . By understanding their business model, you can make orders in an efficient manner, which should lower costs for everyone.

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As soon as you lower your price, your customer will expect to see the same thing next time. Or, they’ll hold out until you offer another “special”. And most likely, they won’t purchase without it.

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The price, or marked-up cost, to achieve these target GPMs is as follows: Manufacturers P=2C so the formula is (2C-C)/2C = 0.5, yielding a GPM of 50%

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