Noncumulative quantity discounts are applied one order at a time. Seasonal discounts reward customers for buying products out of season. Allowances a. Allowances are pricing adjustments that indirectly lower the price in exchange for taking an action such as promoting the product. Allowances can help you influence customer buying behavior. Trade-in allowances are reductions in price offered by marketers in exchange for a product from the customer.
Rebates are refunds to customers who buy certain products during a specific period.
Promotional allowances are used to reward resellers for promoting products to customers through personal selling or advertising. E. Geographic Price Adjustments 1. Geographic price adjustments allow you to include all, some, or none of the shipping costs in your price. FOB Origin Pricing a. This means that you will load the products for transportation at the origin.