As a vendor, Melissa works well with a buyer she's known for years at Dream Toys. This year, Melissa's line of toys had a few pr
oducts that sold poorly, and it is now time to show the Dream Toys' buyer the next holiday season's product line. Melissa knows the Dream Toys' buyer will be a hard negotiator. What should Melissa be prepared to do?
Answer: Melissa should be prepared to provide a markdown price.
Explanation: Markdown of the price is an intelligent move taken in line with low sales of a particular product. If a product is not being sold at a certain price, the step to reduce the price of the product is taken in order to fetch buyers for the new reduced price and thus avoid a total loss. In Melissa's case, it would be intelligent of her if she provides her buyer the markdown price right away in order to avoid hard negotiations and also retain the customer for the good of her business.
