Because no off-invoice allowances are offered when a manufacturer uses everyday low pricing,EDLP(M),retailers _____.

Question

Quizplus · Accepted Answer

With EDLP, retailers make profits from selling merchandise, rather than from buying it, since manufacturers do not offer off-invoice allowances. This allows retailers to have more control in the channel and reduces incentives for activities like forward buying or diverting. However, retailers may still request higher slotting allowances as a way to offset the lack of off-invoice allowances.

Because No Off-Invoice Allowances Are Offered When a Manufacturer Uses