|
NC Iowa | My personal experience as a chem salesman for an independent is that I only have single digit wiggle room. Single digit as in less than 4%.
I quoted against a large coop here in Iowa with at least 40 locations. I gave no discount they gave 12% off the total dollar amount.
I beat them by $11/A on apples to apples.
We gained a customer 2 years ago away from a different coop. He told my dad and I that he saved $90,000 or $20/A on his chemicals in one year by going through us.
I know this doesn't really answer the markup question and probably just shows what most know about coops.
We don't sell at cost but we don't gouge the farmer either. As for rebates, any rebates attached to certain products we sell go directly to the farmer and we do not markup those products the percentage of the rebate.
I also know an independent supplier that I used to work for is at least 10% over my cost on the same products. I believe they have a 15%-20% margin but are also sourcing their chem through other retail/wholesale places because they aren't able to go straight to the source.
Off subject: I caution anyone price shopping that's looking for the highly discounted, low margin or at cost products to question the freshness. Lots of brokered product floating out there.
Edited by AsianFarmer 1/12/2019 08:19
| |
|
How much of a markup do the chemical guys have
