Module 2 · Chapter 4

Prices, Payment Terms and Resale Price Maintenance

The supplier sets what its distributor pays, but never the lowest price the distributor charges. This chapter shows where that line runs, and how the supplier gets paid on time.

≈ 6 min read 8-question test

In this chapter

  • What Tullavane pays for each machine, and when the price may change
  • Why Cressby may recommend what customers pay, but never fix a minimum
  • How Cressby gets paid, and how much Tullavane may owe

4.1Prices and payment in one paragraph

Two clauses deal with money. The price clause lets Cressby set the price, which is what Tullavane pays for each machine. Tullavane alone sets the rental charge and the sale price, which its own customers pay. The payment clause says when the price is due, what paying late costs, and how much may be owed at once.

Key point

Cressby fixes its own price, never Tullavane’s. It may recommend what customers pay, or set a maximum, but never a minimum.

Also in this chapter

  1. The price Tullavane pays
  2. Who sets the price customers pay
  3. Getting paid
  4. Your job

Preview

The rest of this chapter opens with a free account. Every edition is free to read until 31 January. Open a free account by the end of that day and keep every edition published by then, for good. Open it from the edition home →