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Large companies can buy all or most of a wholsaler's stock, reducing the wholesaler's administrative costs.<--- apex
To buy something wholesale is to buy a large amount of something at a cheaper price. Since wholesale companies buy stuff at cheap prices, they can also sell it cheaply
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Why does competition among producers result in lower prices and better product quality and customer service service?
It is a matter of basic economics. The more products available, the lower prices. Companies choose the prices to a point, and the more competition for business, the customers will choose the lowest prices for the same items. Competition also effects quality and service, since if the same products and services are offered, customers will use other factors like how they are treated or how long the product lasts.
Why does competition among producers result in lower prices better product quality and better customer service?
It is a matter of basic Economics. The more products available, the lower prices. Companies choose the prices to a point, and the more competition for business, the customers will choose the lowest prices for the same items. Competition also effects quality and service, since if the same products and services are offered, customers will use other factors like how they are treated or how long the product lasts.
How should you respond to customers who press us for a lower price?
This depends upon your position with the company. In most cases, customers are asking people to do things that they are not authorized to do. If you do not set the prices and are not authorized to negotiate prices, then there is nothing you can do for such customers. You can tell them that this is the price, you cannot change it, and they are free either to buy it at the price for which it is being sold, or not to buy it if they don't want to pay that much. Those are the choices. If, however, you do have authority to change prices and to make deals, then it is up to you to decide whether it is beneficial to your business to make such deals and to lower your prices. You are under no obligation to give in to customer demands, but in some circumstances, maybe the goodwill of the customer is valuable enough to justify the lower price. If the customer expects you to sell your product at a loss, then you really have to say no. Otherwise, you will shortly be bankrupt and out of business. But who knows, perhaps your prices actually are very high, and you can lower them and still make a profit.
Why can wholesalers offer lower prices to large customers?
Assume an item sells for $10 and the seller gets a profit of $1. The seller must locate the one item in his inventory, package the one item and handle the transaction (credit card, cash, etc.), all for the one dollar. If instead he sells 100 of the same Item at once, he only has to do all this activity once and makes $100 for it. So, he can sell it for less and still be ahead. If he does this routinely he can buy from his distributor at a lower price for similar reasons.
What are the characteristics of marketing's production era?
Companies believed that exchanges could be facilitated merely by lowering manufacturing costs, and in turn, passing along the cost savings to customers in the form of lower prices.
What kind of stores are electrical wholesalers?
Electrical wholesalers are stores the sell electrical products and a lower price than retail stores. Electrical wholesalers can also offer tips on working with electrical products.
Why might prices are kept lower than the unit-elastic price?
to create market stimulation, so that the market will attract customers
Why does competition among producers result in lower prices and better product quality and customer service?
It is a matter of basic Economics. The more products available, the lower prices. Companies choose the prices to a point, and the more competition for business, the customers will choose the lowest prices for the same items. Competition also effects quality and service, since if the same products and services are offered, customers will use other factors like how they are treated or how long the product lasts.
When did JCPenney store start with having low prices?
JCPenney was always known for having low prices to attract customers. However JCPenney is recently having better marketing and branding options that result in even lower prices.
Why are some things free when most things cost?
To lower the prices on items without paying more ; and to allow customers to save money.
What is a quantity-pricing strategy?
A quantity-pricing strategy provides lower prices to consumers who purchase larger quantities of a product.
What are the benefits provided by economies of scale?
A larger customer base enables retailers to pay lower prices for wholesale goods.
Its fair for Wal-Mart to encourage American countries to manufacture their products in China so that the prices can be lower?
Sure. Walmart exists to serve their customers. Customers want Low Prices. One way to get low prices is to ship manufacturing to a country with lower labor rates of pay.Some people object to this practice and want to keep the jobs in their country, the USA, for example. That's fine, however these people must realize they will have to pay higher prices for most everything they buy.
Why does competition among producers result in lower prices and better product quality and customer service service?
It is a matter of basic economics. The more products available, the lower prices. Companies choose the prices to a point, and the more competition for business, the customers will choose the lowest prices for the same items. Competition also effects quality and service, since if the same products and services are offered, customers will use other factors like how they are treated or how long the product lasts.
Why does competition among producers result in lower prices better product quality and better customer service?
It is a matter of basic Economics. The more products available, the lower prices. Companies choose the prices to a point, and the more competition for business, the customers will choose the lowest prices for the same items. Competition also effects quality and service, since if the same products and services are offered, customers will use other factors like how they are treated or how long the product lasts.
What is the Comparability factors assumes that larger purchases command lower prices per unit where economies of scale are involved?
Quantity or size
How should you respond to customers who press us for a lower price?
This depends upon your position with the company. In most cases, customers are asking people to do things that they are not authorized to do. If you do not set the prices and are not authorized to negotiate prices, then there is nothing you can do for such customers. You can tell them that this is the price, you cannot change it, and they are free either to buy it at the price for which it is being sold, or not to buy it if they don't want to pay that much. Those are the choices. If, however, you do have authority to change prices and to make deals, then it is up to you to decide whether it is beneficial to your business to make such deals and to lower your prices. You are under no obligation to give in to customer demands, but in some circumstances, maybe the goodwill of the customer is valuable enough to justify the lower price. If the customer expects you to sell your product at a loss, then you really have to say no. Otherwise, you will shortly be bankrupt and out of business. But who knows, perhaps your prices actually are very high, and you can lower them and still make a profit.
