| A | B |
|---|
| Common Carriers | Trucking companies that provide transportation services to any business in their operating area for a fee |
| Contract Carriers | For-hire trucking companies that provide equipment & drivers for specific routes, according to agreements between carrier & the shipper |
| Private Carriers | Trucking companies that transport goods for individuals business |
| Exempt Carriers | Trucking companies that are free (exempt) from direct regulation of rates & operating procedures |
| Freight Forwarders | Private companies that combine shipments from several businesses & deliver them to their destinations |
| Ton-mile | The movement of one ton (2,000 pounds) of freight one mile |
| Carload | The minimum number of pounds of freight needed to fill a boxcar/car |
| Storage | Part of a marketing function & refers to the holding of goods until they are sold |
| Private Warehouse | A storage facility designed to meet the specific needs of its owner |
| Public Warehouse | A storage & handling facility offered to any individual or company that will pay for its use |
| Distribution Center | A warehouse designed to speed delivery of goods and to minimize storage costs |
| Bonded Warehouse | Public or private warehouses that store products that require payment of a federal tax (imports/exports) |
| Return on Investment | A calculation that is used to determine that relative probability of a product |
| Break-even point | The point at which sales revenue equals the costs and expenses of making and distributing a product |
| Demand Elasticity | The degree to which demand for a product is affected by its price |
| Law of Diminishing Marginal Utility | Law that states consumer will buy only so much of a given product, even if the price is low |
| Price Fixing | Occurs when competitors agree on certain price ranges within which they set their own prices |
| Price Discrimination | Occurs when a firm charges different prices to similar customers in similar situations |
| Unit pricing | Allows consumers to compare prices in relation to a standard unit of measure, such as an ounce or pound |
| Loss leader | An item priced at or below cost to draw customers into a store |
| Mark up | The difference between an item’s cost and sale price; usually expressed as a percentage |
| One-price policy | All customers are charged the same prices |
| Flexible-price policy | Customers pay different prices for the same type or amount of merchandise |
| Market position | Relative standing a competitor has in a given market in comparison to its other competitors |
