Leicestershire Renovations has a history of problems with customers who do not pay their bills on time. Leicestershire Renovations wants to improve its cash situation, reduce bad debts, and reduce credit-collection costs. Which of the following forms of pricing would most likely help the firm achieve its goal?
A) by-product pricing
B) zone pricing
C) cash discounts
D) product bundling
E) quantity discounts

Question

Quizplus · Accepted Answer

Offering cash discounts to customers who pay early can incentivize timely payments, improve cash flow, and reduce bad debts. This would be the most effective pricing strategy for Leicestershire Renovations to achieve their goal. By-product pricing, zone pricing, product bundling, and quantity discounts would not directly address the issue of late payments and bad debts.

Leicestershire Renovations Has a History of Problems with Customers Who