Comparing vendor discounts for firm orders: Fixed vs. Sliding

Document Type

Article

Publication Date

8-9-2001

Abstract

To compare the two major discounting methods, fixed and sliding, offered by book vendors for firm orders, this article reports a study of 4,856 orders fulfilled between April 1997 and August 1999 at a public comprehensive teaching university. The results indicate that, at Kean University, fixed discount (12%) gains slightly more savings in the amount of $942.50 (0.5% of $202,226.14, list price) than sliding scales (0%, 5%, 10%, 15%, 16% and 33.3%) distributed between university presses (36.9%) and non-university presses (63.1%). Therefore, any fixed rate higher than 13% is an advantageous deal for Kean with this mix of orders. However, Kean would consider using sliding scales to gain more savings when the orders are mixed with more university presses (16% discount) and trade publishers (33.3% discount). The findings of this study suggest options and flexibility for acquisitions personnel to obtain a mutually beneficial agreement with the vendor. © 2001 Taylor & Francis Group, LLC.

Publication Title

Technical Services Quarterly

First Page Number

1

Last Page Number

10

DOI

10.1300/J124v18n04_01

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