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Unit 11: Wholesale Purchasing and Negotiation with Vendors

Negotiation Tactics: A method or plan chosen to bring about a desired future, such as achievement Notes
of a goal or solution to a problem.
Negotiation: Negotiation is a process where each party involved in negotiating tries to gain an
advantage for themselves by the end of the process. Negotiation is intended to aim at compromise.
Planning: Planning is the process of thinking about and organizing the activities required to
achieve a desired goal.
Quantity Discount: A quantity discount is a price reduction offered as an inducement to purchase
large quantities of merchandise.

Savings: The portion of disposable income not spent on consumption of consumer goods but
accumulated or invested directly in capital equipment or in paying off a home mortgage, or
indirectly through purchase of securities.
Seasonal Discounts: Seasonal discounts are given to retailers for making purchases out of season.
Strategy: A method or plan chosen to bring about a desired future, such as achievement of a goal
or solution to a problem.
Technology: Technology involves the design, engineering and production of innovative and
creative products to meet the needs and wants of others.

Trade Discount: A trade discount, sometimes referred to as a functional discount, is a form of
compensation that the buyer may receive for performing certain wholesaling or retailing services
for the manufacturer.
Vendors: A company which supplies parts or services to another company.
Wholesale: The selling of goods in large quantities to be retailed by others.
Wholesalers: Person or firm that buys large quantity of goods from various producers or vendors,
warehouses them, and resells to retailers.

11.9 Review Questions

1. Discuss the role of wholesale purchasing in the market.

2. “There are several positive reasons to consider for making the choice of using the Online
Wholesale stores for improving the standard purchasing procedure.” Explain.
3. Define buying wholesale merchandise.

4. What are the pros and cons of buying wholesale?
5. Elucidate various types of wholesalers.
6. Highlight the variables involved in meeting with vendors.
7. How will you negotiate with vendors?
8. Define trade discount.

9. Explain the types of quantity discounts.
10. Throw some light on the principles of negotiation.
11. Describe negotiation strategies.

12. What are the tactics involved in negotiation?

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