1. Creekside Apartments offers two-bedroom apartments with the same basic "roommate" floor plan that is popular with other student-oriented apartments in the area. In August and early September, there is no difficulty in attracting tenants at the going rate of $650 per month rent. Although there is a penalty for breaking the lease, each year a number of unexpected vacancies occur at the end of the first semester when some students graduate or drop out of school, move to a dorm, or find someone new with whom to live. Of course, the same thing happens at other apartments, so in late December and early January there are always more empty apartments than new renters. As a result, competition for tenants is usually intense. In this "buyer's market," student renters look for the best deal-and apartment managers dread the idea of having an empty apartment that brings in no rent for the spring semester.

What type of discount or allowance would you recommend in this situation? Why?

2. Prestige Speakers, Ltd. manufactures expensive speakers that are sold through manufacturers1 agents to selected retailers who specialize in selling and installing high-quality audio components and home theatre systems. Most of Prestige's audio speakers are sold on credit. In fact, Prestige usually does not get paid until its retailers manage to sell the speakers themselves. While this service is convenient and necessary for most of its customers, it places a heavy financial burden on Prestige. Recently, for example, the company was forced to postpone production of a promising new product due to a lack of cash.

What type of discount or allowance would you recommend for Prestige to solve its financial problem? Why?

3. PowerPro Electrical Supply Company sells a wide assortment of products to electricians, electrical contractors, and general building contractors in the area around Dallas, Texas. PowerPro's line includes almost everything its customers might need-ranging from wire, electrical tape, circuit breaker boxes, conduit, switches, outlet boxes, lighting fixtures, and a wide variety of electrician's tools and equipment. In addition, like most other electrical wholesalers in the area, PowerPro offers free delivery to the construction site. Despite PowerPro's efforts to promote itself as "the most economical source for all your needs," most of its customers split their business among a number of different electrical supply wholesalers. When PowerPro's owner complained about this, one of his counter clerks offered an explanation: "The person having the work done usually doesn't care what electrical supply house gets the business-so the different electricians just call whoever comes to mind first."

What type of discounts or allowances would be useful to PowerPro Electrical Supply? Why?

4. Cape Fear Furniture Co. produces a line of high quality reproductions of Early American style beds, dressers, tables and chairs. Cape Fear's furniture is distributed nationally through a network of carefully selected furniture retailers. When Cape Fear first introduced its line, sales grew rapidly-in part because of its ongoing advertising in national home furnishings magazines. Now, however, sales are flat-and in some areas falling. Other producers have come out with similar lines, and most retailers now carry several competing brands. The company is concerned about what it considers "a lack of adequate promotion support at the retail level."

What type of discounts or allowances would be useful to Cape Fear? Why?