TYPES OF DISCOUNTS

 Discount is a reduction in price of the commodity, allowing the buyer to pay less than what he would have paid the goods.

TYPES OF DISCOUNTS


Types of discount

  • Quantity discount: - Allowed by trader to encourage him/her to buy more quantity of the product being offer

  • Trade discount: - Allowed to another trader who is buying products for resale to the consumers

  • Cash discount: - Allowed to the customer to enable him pay promptly for the goods bought

  • Loss leader: - Selling the price below the market price to entice the customer to buy

  • Psychological selling: - Playing with the customers psychology in terms of pricing by quoting odd prices such as 999, 199, 99, etc to convince the customer  that the price has been reduced

  • Credit facilities: - where the customer is allowed to take a product for his consumption and pay for it later. This entices the customer to buy more of the product

  • After sales service: - these are services offered to the buyer after the goods have been bought. They may be in terms of packaging, transportation or installation which may be offered to the customers free of charge. This makes the customer to buy more goods with confidence

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