off-season buying, volume purchasing, etc. Price discounts and allowances are used as a "push strategy" to facilitate the movement of goods through the distribution channel (excluding the customer), whereas promotional pricing is used only to lure the customer via a "pull strategy" (see figure...
Sales often occur during specific periods, such as end-of-season, clearance, or promotional campaigns, aimed at increasing customer traffic and clearing inventory. Discounts, on the other hand, can be a consistent part of pricing strategy, such as discounts offered to students, seniors, or member...
11. We offer the same trade allowances to all customers and actually treat the Exchange as a preferred customer for discounts and allowances even though your volume isn’t sufficient. We find each buyer has their own view of how to allocate allowances which directly impacts our ability to ha...
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and small convenience or specialty stores were squeezing traditional mid-sized general retailers out of the marketplace (Griffith and Krampf (1997)). Particularly, the “big-box” retailers, like Wal-Mart, Carrefour, Home Depot and Tesco, are taking increasing market shares in the industries. A...
Discounts & Allowances : Price breaks provided to merchants or wholesalers in order to promote large purchases or stock clearing. Cooperative Advertising : Cost-sharing arrangements between merchants and manufacturers to finance advertising campaigns. Slotting Allowances : Manufacturers pay merchants to obta...
There is not a single discount pricing strategy that works well in every case. The approach to be used depends entirely on the product in question, its relevancy to the market and its sales history. One of the main reasons for giving a discount is to make the introduction of new products...
A trade-in allowance is a discount given for returning an old item when buying a new one. It’s a popular method used by businesses, particularly in the automotive and electronics industries, to encourage customers to upgrade to the latest models. This type of discount not only incentivizes ...