What do suppliers typically want regarding their price agreements?

Prepare for the SQA Higher Business Management Exam. Enhance your skills with dynamic flashcards and practice questions. Explore hints and explanations to ace your exam!

The correct answer highlights the common objectives suppliers pursue in their price agreements. Suppliers generally want to maximize their profits, and avoiding discounts is one way to achieve this goal. By not offering discounts, suppliers can preserve their profit margins while ensuring that their pricing structure reflects the value of the goods or services they provide. This approach is essential for maintaining the financial viability of their operations, allowing them to reinvest in production, innovation, and service improvement.

In contrast, the other options do not accurately represent typical supplier goals. For instance, increasing prices without notice could damage supplier-customer relationships, leading to a loss of business. Decreasing payment terms could also negatively impact cash flow from the supplier's perspective, as longer payment terms typically help them manage cash flow more effectively. Lastly, maintaining fixed prices regardless of quality could backfire; if the quality of a product decreases, customers may be less willing to pay those prices, potentially harming the supplier's reputation and sales.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy