Let's practice using these new terms. Presume you are creating a new consumer product. Using hypothetical numbers, answer the following.
1. How much does it cost to manufacture each unit of the product, and what does the manufacturer charge the retailer for each unit? How does the price change based on the volume purchased? What volume of product does the retailer purchase? Name the type of discount given.
2. State the shipping terms for transporting the product from the wholesaler to the retailer. What do these shipping terms indicate?
3. Name the type of discount given if the retailer pays the invoice early. Express how these terms are written on the invoice.
4. The retailer does not sell the product at its suggested retail price quickly enough. How does the retailer encourage more sales? Describe the type of discount involved.
Pretend you are a consumer of the product your classmate has described. Would the strategy in question 4 inspire you to buy? Why or why not?