A new soap manufacturer wants to get their product to national retailers. They recently developed a product they think will be able to compete against top dogs such as Dove and Dial. However, they know that retailers are often skeptical of carrying new products when their success is not known. The soap manufacturer therefore offers a price reduction to the retailers for each case of soap they buy. The soap manufacturer is most likely using a

Question

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The soap manufacturer is using a buying allowance, which is a temporary price reduction offered to retailers for purchasing a certain quantity of a product. This is a common tactic used by manufacturers to encourage retailers to take a chance on a new product and to boost initial sales.

A New Soap Manufacturer Wants to Get Their Product to National