bulk-buying


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bulk-buying

the purchase of raw materials, components and finished products in large quantities, thereby enabling a BUYER to take advantage of DISCOUNTS off suppliers’ LIST PRICES. A supplier may offer a price discount to encourage the placement of large orders as a means of obtaining extra sales in order to exploit fully the ECONOMIES OF SCALE in production and distribution. In many cases, however, the initiative lies with buyers, with powerful retailing and wholesaling groups exacting favourable price concessions from suppliers by playing one supplier off against another. See CHAIN STORE, OLIGOPSONY, MONOPSONY.
References in periodicals archive ?
By working together the local authorities will tender energy companies to get a better price when bulk-buying.
The biggest losers, however, are the Polish mafia which has been stung for millions after bulk-buying over half of the available tickets.
While studying the dimensional stone business in Europe, she launched Innovative Marble and Tile in 1981 and has since built it into Innovative Stone, a multi-million dollar natural stone company with an exclusive global network of stone and tile resources, bulk-buying capabilities, project management expertise and installation.
This resulted in reducing the cost of its program, as well as further enhancing its buying leverage with its suppliers, with whom it had already forged a bulk-buying consortium with other retailers to gain price leverage.
The council gains a five per cent discount on bulk-buying and have been offered twice this incentive.
CASH and carry superstore chain Makro are using their bulk-buying powers to sell cars at a hefty discount.
In addition to giving small magazines the benefit of bulk-buying power, it serves to create a stable market for recycled paper, bringing price down while creating demand.
department store chain couldn't use its bulk-buying might to achieve low, low prices on merchandise because summer is winter and winter is summer depending upon where you are in North and South America.