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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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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.
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.
How mergers and acquisitions affect customers?
Mergers and acquisitions can significantly impact customers by altering the availability and pricing of products and services. When companies consolidate, they may streamline operations, potentially leading to cost savings that can benefit customers through lower prices. However, reduced competition can also result in fewer choices and higher prices in the long run. Additionally, customers may experience changes in service quality or brand loyalty as companies integrate their offerings.
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.
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.
Why is Expedia able to offer lower prices than booking directly with hotels and airlines?
Expedia can offer lower prices than booking directly with hotels and airlines because they negotiate bulk discounts with these providers and can pass on the savings to customers. Additionally, Expedia can compare prices from multiple sources to find the best deal for customers.
Why is Booking.com able to offer lower prices compared to hotel websites?
Booking.com is able to offer lower prices compared to hotel websites because they negotiate discounted rates with hotels and have a wide range of options, allowing them to offer competitive prices to customers.
Why do companies practice price discrimination?
Companies practice price discrimination in order to maximize their profits by charging different prices to different customers based on their willingness to pay. This strategy allows companies to capture more value from customers who are willing to pay higher prices, while still attracting price-sensitive customers with lower prices.
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.
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.
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.
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 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.
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.
