Danks recommends the prices on all products based on what’s competitive in the market. The company regularly surveys its competitors and keeps check on price sensitive lines. Apart from catalogue items, Group Members are under no obligation to charge the prices set by Danks. Danks customers have the ability to maintain retail pricing at store level to better reflect their individual markets and to ensure that freight costs are recovered. They also have the option to margin manage some or all of their product lines to ensure that they have locally competitive retails prices whilst optimising their gross margins.
If required, Danks can also supply customers with store specific priced shelf labels and price tickets to offer a complete pricing service.
The charge-back system removes the middle man and simplifies the administration of purchasing bulky products or large volumes. First Danks negotiates a price with suppliers. Then the retailer orders from the supplier who delivers the products to the store. After this, the supplier invoices Danks and Danks invoices the store. The virtues of this service are: centrally negotiated prices that leverage the collective buying power of all Danks customers, no need for customers to open accounts with 600 different suppliers, and one statement/one payment to Danks, and in most cases, a contribution is made towards advertising the group via co-operative advertising subsidies.
“The Retail Merchandising System makes sure we have the right stock in the right place at the right time." - Jeff Hitchins Home Timber & Hardware, Moe, Victoria.