A supplier signs an agreement with a customer that states $350,000 in savings will be earned by the customer over the next 18 months in an exchange for a tenfold increase in the customer's share of supplies ordered by the customer.This is an example of ________.
A) solution selling
B) consultative selling
C) risk and gain sharing
D) strategic alignment
E) demand shifting

Question

Quizplus · Accepted Answer

This agreement involves risk and gain sharing, where the supplier and customer share the risk and potential benefits of the agreement. The supplier is taking a risk by agreeing to provide a tenfold increase in supplies, while the customer is incentivized to actively work towards achieving the $350,000 in savings to realize the benefits. This type of agreement is beneficial for both parties if the goals are achievable and mutually beneficial. It is not an example of solution selling, consultative selling, strategic alignment, or demand shifting.

A Supplier Signs an Agreement with a Customer That States