Q I am a commercial vehicles sales
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manager and am finding it more and more difficult to obtain profitable business because of the increasing discounts one is being compelled to give in very many cases if orders are to be obtained. If one does not allow these quite unreasonably high discounts and refuses the business, others accept. What is the answer?
AThis problem is virtually as old as business
itself and becomes more severe as competition increases. Just as operators wish to buy their vehicles in the cheapest market so the operators' own customers are also keenly interested in low haulage rates. But the fact that many long-established operators, as well as commercial vehicle distributors and dealers, are able to continue in business by virtue, presumably. of an adequate profit margin, implies that there are still sufficient customers who require not only an economic rate (or price) but also an acceptable level of service and the continuity required to provide such service, which only a reasonable profit margin can ensure. A further point in this connection is the obvious need for adequate working capital and reserves with which to combat periods of severe competition when excessive price-cutting is most prevalent.