[BC] Large grocer wants me to enroll with EDI service.
I have supplied a large grocer for over a decade. This grocer is now wanting me to sign up for an EDI service to simplify their procurement and satisfaction system. However, this service will cost me $45 per month to participate. This equates to $540 per year excluding taxes. My annual sales to this grocer is about $9,000 per year servicing 7 stores. I do my own deliveries which keeps my ability to expand in their organization restricted, without adding extra costs to me. This grocer also has 1% billing charge which came to $90 this past year. This grocer also has a policy in place that they reserve the right to the 'lowest cost pricing.' So once a year they find your lowest selling price to competitors and claw back the difference from accounts payable due. So, to increase my pricing to this grocer is not a viable option. Maybe increasing my costs and give my other customers a deduction. What a headache!
Basically, this grocer is using a 3rd party to reduce their costs and fund it by down loading the cost onto the suppliers. Hence, I have to increase my costs to the consumer, (my customers) to fuel these big tech companies.
How would you handle this?