An eyeglass manufacturer tried to boost sales for the summer quarter by offering its distributors a special discount if their orders for that quarter exceeded those for last year' s summer quarter by at least 20 percent  Many distributors qualified for this discount  Even with much merchandise discounted, sales increased enough to produce a healthy gain in net profits
The manufacturer plans to repeat this success by offering the same sort of discount for the fall quarter
The distributors who qualified for the manufacturer's special discount were free to decide how much of that discount to pass on to their own customers.