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When you are asked for a price cut, offer the cut only if the customer will sign and legally agree to buy your larger amount of material and packaging goods you are now keeping in stock. You want this especially if the material is specifically for this customer.  If he has extended terms, tell him to sign the agreement to commit to buying all of the material you must purchase and keep in stock but give him a break with an offered payment discount.  Give him a discount if he changes his net 60 payment terms down to net 30 for you, or maybe he agrees to take a 1% discount but must pay you in Net 10 or Net 15 days.  When you buy the material, you can now get a volume discount since you are buying more but want to be sure the customer will buy everything you committed to us.

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