In: Accounting
Target decided that sales needs to increase immediately, so they temporarily reduce prices by providing ____. Select one: a. pull money b. rebates c. push money d. premiums e. trade allowances
Target decided that sales needs to increase immediately, so they temporarily reduce prices by providing trade allowances .
To achieve Targeted sales many time Manufacturer offers trade allowances to purchase particular quantity of product to reseller. For eg. Manufacturer offer some time trade allowances of $ 1 for purchase of every purchase of tooth paste.
Trade allowances helps reseller to earn some incentive. Many times by reducing price sale target may achieved but same timetheir will be loss of future demad of product because many times customer will buy huge quantity of product for future consumption at trade allownces, it will loss the future demad of product. One can get competitive advantage by offering trade allowence to increase market share of particular product.
There for Target decided that sales needs to increase immediately, so they temporarily reduce prices by providing trade allowances .
Option E is correct answer.