ch. 14 - ch 14 18:50 Price Estimate retail value(do your...

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Unformatted text preview: ch. 14 18:50 Price Estimate retail value (do your research e.g. closing manufactures, manufacturing cots) Compare price quotes offered by different vendors Consolidate orders with one resource to qualify for large quantity discounts Not violating the Robinson-Patman act of 1936 Price discrimination in interstate commerce All price reductions must be offered on a “proportionally equal” basis to all buyers Price decline guarantee- over a stated period of time Discount Determine the types and qualify for discounts Quantity Seasonal Trade Cash 2/10, net 30 cash discount ordinary dating terms—invoice date ROG (receipt of goods)—the day the merchandise was received in the store EOM (end of month)—from the end of the month 2/10 net 30—ten days from the end of the month; On the 25 th or later, then end of the following month Extra—specified number of additional days ; ex: 60x Advance—in the future, ex: 2/10 net 30 as of may 1 Anticipation—in advance Transportation terms FOB origin (factory)—buyer takes charge after goods have been delivered to the carrier FOB destination (store)—most ideal for buyer FOB destination, charges reversed—buyer pays for shipping but seller is FOB destination, freight prepaid—buyer takes title of the goods once shipped but seller pays freight charges FOB shipping point—seller only responsible till shipping point Allowance Cooperative (coop) advertising Most common Manufacturers pay a percentage of the ad’s cost Required proof that the ad ran before credit Return privileges On memorandum Has a return privilege On consignment Buyer pays for it only when it sells Negotiating special buying situations Private brands—high quality compared to national brands Specification buying Promotional buying Job lots Off price buying e.g. T.j.Maxx, Marshalls, Burlington Coat Factory Seconds and irregulars Placing the order types of orders Regular orders Reorders Special orders Advance orders Open orders—by buying office...
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This note was uploaded on 02/13/2012 for the course HUEC 3042 taught by Professor Liu during the Fall '08 term at LSU.

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ch. 14 - ch 14 18:50 Price Estimate retail value(do your...

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