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Business Math Theory Part- All about the Discount

 


Business Math Theory Part- All about the Discount

Author: Tan Chung Keong
Date: 2/1/2021


I.    Trade discount 交易优惠

Trade discount is the type of discount that only offers to the business party such as the retailer, wholesaler, and so on. Other than that, the trade discount is not for the consumer or buyer. The trade discount can be different significantly while the buyer was the only biggest customer to the seller, this is because this type of buyer will have a higher negotiation power over the seller. Relatively, if the seller has divided his sales to many of the customers, then the customer will not have too much negotiation power with the seller.
 

II.  Seasonal discount 季节性折扣

It was a discount that only appeared in a certain time period which is when the product or goods did not completely sell out in the season. So that when this happens, the enterprise will offer a seasonal discount to buyers after the season. This discount was applicable both to consumers and businesses.

III. Volume discount 批量折扣

Volume discount happens while the customer has purchased a certain amount of the product or goods that reached the target transaction amount that was set by the seller during the measurement period. Usually, the measurement period will be like in 1 year. This type of discount is usually implemented by a seller to encourage the buyer to purchase more amount of the product by offering them a reduction on the price for every group of goods purchases by the buyer.

 

IV. Loyalty discount 会员折扣

The loyalty discount is offered to the customer while the customer has shown their reparative support to the same business such as always bought goods from the same enterprise. The loyalty discount is also one of the methods to show appreciation and increase the stickiness of the customer to the same business.


V. Sale discount 销售折扣

One of the most common types of discount will offer a temporary decrease in the price of the product from the regular price, usually based on the percentage. Sales discount was implemented by the seller while it was lack of cash, wanted to reduce stock, faster cost-covering, and other reason too.


VI. Coupon and rebate 优惠券和返利

Coupons and rebates are more appearing and used in the e-business in the internet platform such as Lazada, Shopee, Amazon, Alibaba, and so on. However, it was a bit different, coupons usually have an immediate effect while customers purchase, but a rebate is only effective after the customer purchases something. For example, coupons could discount 20% from regular price while buying, and rebates could give you virtual currencies such as Shopee coins based on the price after you buy.



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