Implementation of discounts for commerce activation of domestic wholesale trade organizations

Received: September 24, 2015
Accepted: September 24, 2015
Authors: 

Kulinich T.V., Adamchuk A.B.

Lviv Polytechnic National University Management of Organizations Department

Practical peculiarities of activizing domestic wholesale trade organizations’ activities through sales promotion specific tools are considered. Particular attention is paid to such an instrument of business revitalization as introduction of a reasonable system of discounts for wholesale customers. There exist many benefits of providing discounts, among them: forming a competitive assortment model for a wholesale trade object, its flexible response to market demands and its adaptation to changing conditions, financial stability provision and profitability increase. A limited list of factors that determine the amount of offered discounts is presented; the conditions under which the discounts granted positively affect the final (reporting) results of wholesale trade organizations are defined. There are shown possibilities of this business activation tool to affect representatives of the wholesale dealer's environment: differentiation of existing and potential wholesale clients by various criteria and setting the threshold amount of discounts for their specific categories that results in the predicted increase of the number of customers, growth of their loyalty, possibility to connect this organization (dealer) to the new market networks etc. There are also reviewed internal benefits given by different types of discounts for wholesale trade organizations, including: the creation of such an inventory management system that can reduce the impact of seasonality on income (profit) of these organizations, taking into account the life cycle and the extremes of sales for certain goods assortment groups.

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