December 2017
Intermediate to advanced
390 pages
7h 51m
English
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Chapter 89 Percent Utilization of Discounts
Measurement Need
To understand the impact on margin when discounts are used.
Solutioni
Percent utilization of discounts (PUD) measures the total value of discounts taken compared to the total purchases from the supplier:
Where
PUD = percent utilization of discounts
Vd = $ value of discounts taken
Pt = total $ purchases
A retailer’s buyer or buying team (in the case of large, multidepartment retailers such as warehouse stores and department stores) purchases their merchandise from a network of suppliers. The suppliers induce product sales often through the use of buyer discounts, used primarily to increase the placement of new products and/or for volume purchases. If ...
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