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In: Operations Management

“Buyers only need to take a markdown when they make mistakes. Therefore, good buyers should never...

“Buyers only need to take a markdown when they make mistakes. Therefore, good buyers should never have to take markdowns.” Do you agree with that statement? Explain your answer.

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Expert Solution

Markdown is when the price of a product is cut down when being sold.
I strongly agree with the line that when a buyer has made a mistake he can go for a markdown. But a good buyer will never have to take markdowns.
Rationale: When a buyer has purchased something which did not cost the amount he has purchased it for i.e. he has made a mistake by purchasing it at a high price, he can wait for a markdown. So, if a buyer makes a mistake while buying a product at a higher price, he can go for a lower price (i.e. a markdown) when purchasing a similar product the next time.
But a good buyer will be someone who never has to go for markdowns because he will carefully study the price and the details of the product before making a purchase. A good buyer will never pay more money for the product which isn't worth the money. He will decide the correct price and purchase the product only when it costs the price he has thought. Hence, a good buyer will never have to take markdowns.

keosha answered 4 months ago
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