Pricing Agreements and who I can sell to?

Reply Wed 13 Dec, 2017 08:50 am
So my employer has a pricing agreement(PA) with buyer. Buyer sells to customer A. Customer A asked whether we can sell directly to them and cut out the middleman. The PA does not have any exclusivity clause and also, we can terminate for convenience if need be. Can we sell to customer A if the PA doesn't state otherwise?
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Reply Wed 13 Dec, 2017 09:01 am
The "middle man" should have a deal that is better than if the buyer goes "direct" with the manufacturer. Plus, there advantages - service, guarantees, delivery, quantity concerns, and other factors that need to be factored.

I used to sell gourmet candy that came from the West coast manufacturer. As a broker, we had access to small-batch orders availability. Otherwise, if the stornote wanted to order the candy, they had to order it in huge amounts. While the per unit cost was slightly higher, it was better to order from the salesperson/broker.

But to answer your question, the answer is yes, if the manufacturer does not have a distribution contract in place with a broker.

Reply Wed 13 Dec, 2017 09:04 am
Well I am assuming we would sell at a higher price than we sell to the middle man and Customer A ,even at the higher price we are selling, is still saving money from the price "middleman" gives them. Hence my company debating whether to do this.
Reply Wed 13 Dec, 2017 09:06 am
Depends on the quantity for this to be advantageous for your company.

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