Price and Discount Schedule Analysis: A Guide for Purchasing, Marketing, Materials, and Financial Managers

by Paul J. Kuzdrall, Robert R. Britney

Overview

Discount Schedule Analysis (DSA), a technique illustrated and explained in this management book, provides analytical tools for increasing profits by linking prices and discounts to management decision making. According to the authors, the most direct way for many manufacturers to affect the bottom line is to reduce the prices paid for goods and services. It is possible to achieve this profit leverage effect without switching suppliers or even requiring suppliers to reduce prices. The authors show how to analyze published quantity discount schedules to find out how the seller sets prices and how to break schedules down into fixed and variable (cost) components. With this information, corporate buyers can exploit vendors' price and quantity discount schedules to maximum advantage. Conversely, corporate vendors can forestall revenue losses and undesirable side effects of discount schedules by constructing schedules according to examples in the book.

Using actual price schedules, the authors analyze the ideas, theory, hazards, and advantages inherent in the schedules. They examine how quantity discounts are set, whether the price-setting practices are consistent, and whether the discounts meet their stated objectives. The book explains the gray market phenomenon and how to profit from it. It shows how to evaluate the true costs of such common sweeteners as free delivery, installation, and delayed payment. The authors also analyze purchasing requirements for Just in Time (JIT) inventory systems. The book offers valuable methodologies for both the buyer and the seller. Purchasing managers as well as managers responsible for cost accounting, marketing, sales, finance, and legal areas will benefit.

Product Details

ISBN-13:	9780899303666
Publisher:	Bloomsbury Academic
Publication date:	11/21/1991
Pages:	280
Product dimensions:	6.14(w) x 9.21(h) x 0.69(d)

About the Author

PAUL J. KUZDRALL, CFPIM, is Professor of Management at the University of Akron in Akron, Ohio, and President of Paul J. Kuzdrall Consulting, Inc.

ROBERT R. BRITNEY, P.Eng., is Professor of Production and Operations Management at the Unversity of Western Ontario in London, Ontario, Canada.

Table of Contents

Preface
Discount Schedule Analysis
Inventory
Costs
Prices
Calculating Fixed and Variable Components
DSA Applications I
DSA Applications II
Just in Time
Conclusions
References
Selected Bibliography
Index

Editorial Reviews

Explains and illustrates a technique for increasing profits by linking prices and discounts to management decision making. The basic idea is to analyze published quantity discount schedules to find out how the seller of goods or services sets prices, and how to break schedules down into fixed and variable components. Also analyzes purchasing requirements for just-in-time inventory systems. Annotation c. Book News, Inc., Portland, OR (booknews.com)

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