PICKFORD
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Discount can be defined as the reduction in the price of goods to encourage bulk purchases and prompt payment. a discount decreases the amount someone pays when buying goods. There are various types of discount some of which include:
1. Cash discount:
cash discount is an allowance given to a customer to encourage payment for goods and services within a stipulated period of time it is a reduction given by a creditor to his consumer on an account paid before a specified date to ensure prompt payment.
2. Seasonal discounts:
seasonal discount is a price reduction given by a producer to a buyer who is willing to order receive and pay for goods during the off-season or in advance of selling season example a thread and will be granted a seasonal discount on Christmas goods.
3. quantity discount:
quantity discount is offered by the supplier to the retailer as an inducement to buy large quantity of goods in a single order. Large order quantity can help to reduce the suppliers selling handling transportation and inventory cost quantity discount represent an additional way to reduce the price of goods.
4. Trade discount:
true discount is a basic discount given to a middleman as an inducement or rebate for performing certain functions in the channel of distribution and to cover his operating cost and profit. True discount is also referred to as functional discount. It is a deduction in the standard price or catalogue price of goods on sale to provide for the retailer's gross profit.
1. Cash discount:
cash discount is an allowance given to a customer to encourage payment for goods and services within a stipulated period of time it is a reduction given by a creditor to his consumer on an account paid before a specified date to ensure prompt payment.
2. Seasonal discounts:
seasonal discount is a price reduction given by a producer to a buyer who is willing to order receive and pay for goods during the off-season or in advance of selling season example a thread and will be granted a seasonal discount on Christmas goods.
3. quantity discount:
quantity discount is offered by the supplier to the retailer as an inducement to buy large quantity of goods in a single order. Large order quantity can help to reduce the suppliers selling handling transportation and inventory cost quantity discount represent an additional way to reduce the price of goods.
4. Trade discount:
true discount is a basic discount given to a middleman as an inducement or rebate for performing certain functions in the channel of distribution and to cover his operating cost and profit. True discount is also referred to as functional discount. It is a deduction in the standard price or catalogue price of goods on sale to provide for the retailer's gross profit.
