Question:You are considering different types of distribution channels
for your prod- uct. You are confident of...
Question
You are considering different types of distribution channels
for your prod- uct. You are confident of...
You are considering different types of distribution channels
for your prod- uct. You are confident of generating $1 million
worth of sales yearly. How much of this sales revenue will you
receive if you
a. sell directly to your customer?
b. go through a wholesaler?
c. go through both a wholesaler and a retailer?
Assume that you have to pay 10% commission to the wholesaler
in part (b). For part (c), assume that the retailer takes 5% of
generated sales, and that the wholesaler takes 10% of what is left
before passing the money along to you.