| A | B |
|---|
| channel members | the businesses that take part in a channel of distribution |
| retailer | the final business organization in an indirect channel of distribution for consume products |
| price | money paid for a product/service |
| distribution | locations and methods used to make a product or service available |
| channel of distribution | the route a product follows (producer to consumer) |
| selling price | price paid by customer |
| product costs | cost the manufacturer or price paid by businesses to sell product |
| operating expenses | expenses to create a product |
| profit | amount of money after expenses |
| gross margin | selling price - cost of a product |
| markup | amount added to the cost |
| markdown | reduction of original selling price |
| reasons for markdowns | low demand, end of season, product flaws |
| direct channel | products move directly from producer to consumer |
| indirect channel | others participate in movement of products from producer to consumer |
