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Which best explains why wholesalers can offer lower prices to larger customers?

Wholesalers can offer lower prices to larger customers primarily due to economies of scale. When larger customers purchase in bulk, wholesalers can reduce their per-unit costs through streamlined operations, reduced handling, and lower shipping expenses. Additionally, the increased volume of sales allows wholesalers to negotiate better prices with suppliers, passing those savings on to their larger clients. This pricing strategy incentivizes bulk purchasing and fosters long-term business relationships.


Ask us of the following best explains why wholesalers can offer lower prices to larger customers?

Wholesalers can offer lower prices to larger customers primarily due to economies of scale, which allow them to reduce costs per unit as they sell in bulk. Additionally, larger customers typically place higher volume orders, leading to reduced shipping and handling expenses. This enables wholesalers to negotiate better terms with suppliers and pass on the savings to their larger clients, making it more cost-effective for both parties.


What best explains why a large company can undersell small retailers?

Large companies can negotiate better prices with wholesalers.


What is market skimming prices?

Price skimming is a strategy by which the initial price set is the highest initial price any customers will pay. As those customers pay those prices, the price lowers to bring in more customers.


Why can wholesalers offer low prices to large customers?

Large companies can buy all or most of a wholesaler's stock, reducing the wholesaler's administrative costs.


Who are the primary customers of wholesaling businesses Why?

The primary customers of wholesaling businesses are retailers, manufacturers, and other businesses that require bulk products at lower prices. Retailers purchase from wholesalers to stock their stores without incurring the costs associated with buying directly from manufacturers. Additionally, businesses may seek wholesalers for convenience and efficiency in sourcing a variety of products, allowing them to focus on their core operations. Wholesalers play a crucial role in the supply chain by bridging the gap between producers and end-users.


How to order shoes for wholesale prices?

It is recommended to use FashionTIY. Factory direct prices and fashionable styles are the reasons why many wholesalers choose it.


What legislative act makes it illegal to charges different prices to different wholesale customers?

The legislative act that makes it illegal to charge different prices to different wholesale customers is the Robinson-Patman Act. Enacted in 1936, this act aims to prevent anticompetitive practices by prohibiting price discrimination that harms competition. It specifically targets unfair pricing practices between wholesalers and retailers, ensuring that all customers receive equal pricing under similar conditions.


Which best explains why large companies pay less than goods from wholesalers?

Large companies often pay less for goods from wholesalers due to economies of scale. When they purchase in bulk, they negotiate better prices and terms, benefiting from reduced per-unit costs. Additionally, wholesalers may offer discounts for larger orders, further lowering the overall expenditure for these companies compared to smaller retail purchases. This purchasing power enables large companies to secure more favorable pricing arrangements.


Why do wholesalers offer lower prices to larger customers?

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


Where can a company buy industrial ceiling fans in bulk for a reasonable price?

The best place to industrial ceiling fans in bulk at reasonable prices are wholesalers, they can get them at good prices, and then they transfer those prices to you.


What explains the factor responsible for setting prices in a free market system?

"Supply is relative to demand" explains the factors responsible for setting prices in a free market system.