What is geographical discounts

Geographical discounts are which are given by the entrepreneurs to their customers based on where the customers are located or based on the distance between the business and where the customers are located.

Geographical discounts are usually given by suppliers who distributes goods and services to different retailers who are located in different areas.

Since suppliers supplies goods and services by transporting the goods and services to too many retailers located in different geographical locations.So retailers who are located near their business will enjoy or receive more discounts on the goods and services they purchased from the suppliers than those retailers who are located far from the business who will receive less discounts since the suppliers of goods and services will have to cater for the extra cost of transporting the goods and services to where the retailers are located.

These means that retailers who are located near the suppliers will purchase goods and services from the suppliers at lower costs than those retailers who are located far from where the supplier is situated.The retailer who are located far from the will have to purchase goods and services from the suppliers at slightly higher costs than those retailers who are located near the suppliers.

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What is geographical discount
What is accumulative quantity discount in business
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Type of discounts in business
Why business's gives discounts to customers

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