Th3.3: ^^ Marketing and Purchasing Economies Flashcards
Buying in bulk
large firms are able to buy in large numbers so may be able to buy their raw materials at a cheaper price than competitors
Specialisation
like other areas, businesses can afford to take on specialist buyers and sellers who could be more efficient due to the extra time and knowledge
Distribution - Why are large firms able to enjoy preferential rates from transport companies?
because they offer the company a lot of business - can transport in large batches
Distribution - What can large businesses also establish?
regional distribution centres which enables them to reduce transport costs by using large transporters over long distances, storing goods in the distribution centre and take stock to individual shops