>You should eat the cost, over time you will learn to order extra
>phones on the markup so that you can support the client.  This is biz
>101.

DING DING! exactly right on. When you do your margin calculation it should
be:

(my cost * my markup) + value of product according to failure rate in
arbitrary lots

So, a simple example is, say, a Snom 360 which is about $380 Cdn dealer
cost. A customer orders 5 boxes, 100 phones. You know for a fact the failure
rate on a 360 is about 2% so your calculation is as follows:

((380 * 100) * 1.2)+(380 *2) - assumes 20 point margin. In this case, your
safety margin comes out to a 1.6% premium, which at the end of the day adds
$7.60 to the cost of each phone, which your client probably won't notice if
we are talking about a $430 phone.

ps Customer pays one-way is standard in the PC industry, unless the company
is called Apple - they ALWAYS pay shipping both ways. Your customer is a
cheapass. 
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