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

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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
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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
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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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