Discounts are the amount by which the selling price of a product or service is reduced. Many companies approach this aspect in a primitive way - they offer the client the best price or a discount card. There are also more complex options, when the discount is provided indirectly, for example, in the form of a deferred payment or bonuses.
Let's take a look at the discounts and organize them for more effective use in practice. There are 40 types of working discounts in total, they will be discussed below. As you read, note the types that are worth using in your business.
40 types of discounts
1. Assortment discounts
are given for certain types of products and services, sales of which are especially important for the company.
2. A bonus discount
is given for the total volume of purchases or the fulfillment of certain obligations for a particular period. Such discounts are made to both end consumers and distributors based on the results of a certain period of time.
3. Dealer discount
is given to manufacturers, representatives or intermediaries when working in a specific supply chain.
4. A credit discount
is provided to partners in long-term relationships. The discount level rises as the customer is credited with a specific batch of purchased goods.
5. Club discounts
are available to members of national and international discount clubs (individuals and companies). They pay an entrance or annual fee, in return for receiving a club card, according to which sellers participating in the discount program provide discounts on goods and services.
6. The collective discount
is given to a group of buyers. For example, if you gather a company of 30 people, you will receive a discount on a trip to the water park.
7. A cross-discount
is given on an additional product or service, and the base product is sold at the regular price.
8. Cumulative discount
is a discount, the size of which increases with the amount spent: the more you buy, the higher the discount.
9. An unexpected discount
is a non-systemic discount that is given randomly according to any criterion (time, type of customer or product). Such discounts really amaze customers and are remembered, therefore they are the most effective.
10. The general discount
is widely used when concluding contracts for the supply of machinery and equipment, and in some cases can reach 20-40% of the list price of the goods. The amount of the discount is determined during negotiations and depends on the market situation, competition, duration of partnership and other factors.
11. A special discount
is given for special conditions of purchase, such as trial or export consignments. Its name alone grabs the attention of customers and creates a sense of exclusivity and extreme value from the purchase.
12. Affiliate discount
is a preferential condition for attracting a new partner who will represent you, promote and sell your products.
13. Personal discount
is provided directly to the client. It can be offline, for example in the form of a coupon or flyer, online as an electronic coupon, promotional code or magic word that can be used both offline and online. The most important advantage of this discount is the ability to measure the effectiveness of a particular communication channel for different target audiences.
14. A holiday discount
is provided for a certain holiday, and in business there is almost always a place for a holiday: calendar, professional, anniversary, state, personal, family, traditional, folk, international, religious, corporate or in honor of some achievement.
15. A presale discount
is applied when ordering a product or service in advance. Buyers are informed of the release date of the product and an offer is made to order the product in advance on preferential terms.
16. A simple discount
is given on the list or reference price. The classic size is from 5 to 10%. Such discounts are among the most ineffective.
17. Seasonal Discount
is an offer of better off-season purchases to stimulate even sales throughout the year. This discount allows you to reduce the cost of storage of products.
18. A situational discount
is a “push-up” discount based on the circumstances of the sale. Sales managers use it. When it is clear that the customer is almost ready to make a purchase, but is still hesitant, you can nudge them into making a decision by offering a discount. As a rule, it is no more than 1-5% of the cost.
19. Discount for regular customers
is provided to customers who regularly purchase from one seller for a long time. That is, a specific group of consumers. For example, drugstore chains often arrange discounts for retirees on certain product groups. Such a discount will attract a lot of attention. Even if competitors make a better offer, a customer who has already started diligently displaying his first and last name in order to complete your task will still stay with you.
20. Discount for VIP buyers
is provided to VIP-clients who advertise a product or service. In fact, it is given to opinion leaders and allows you to use the fact of purchase and, in fact, test drive the product for advertising.
21. A quality discount
is given for a product that has lost its presentation or has a defect. That is, it is a discount for the inadequate quality of the service, product or packaging.
22. Quantity discount
is the most widespread type of discount in Russia: the more you buy, the higher it is.
23. The bundle discount
is used by companies selling complementary products to encourage shoppers to purchase more than one product in a line. For example, this is how sushi sets and comprehensive diagnostic programs of medical centers are sold.
24. Discount for cash forms of payment
, as a rule, is used by small companies and online stores. It may look like an anti-discount, because the amount with a non-cash payment method will be higher by the percentage of acquiring services. If the customer has to pay a commission to the acquiring bank, which increases the amount spent on the purchase, he may decide that he paid more than he should have.
25. Volume discount
, here we are talking about the physical volume.
26. A discount for the regularity of purchases
and adherence to pre-agreed terms is given to companies and people who adhere to these agreements.
27. A discount for terms of delivery
is provided to give merchants a tool that, in terms of logistics and transport and warehouse operations, provides the best conditions for the delivery of goods to an intermediary.
28. A discount for main product
is often used for locomotive products that generate a large cashflow and flow of customers. Usually it is accompanied by a time limit, and the result is a combination of discounts. For example, before the New Year, many large retail chains sell Christmas trees below cost. Their goal is to attract as many families as possible to the store.
29. The first purchase discount
is sometimes used by online stores. When registering a new user, a welcome email is sent to him with a one-time discount on the first purchase.
30. Discount on used items
are given for used equipment and other goods. Used equipment costs up to 50% of its original cost. Such discounts are often used by retail chains.
31. The discount for purchases on the Internet
is used when there are two sales channels: offline and online. Provided when purchased from the company's online store.
32. A discount for a term
is valid for a certain period. In real time, it can be represented as a timer that shows how much time is left until the end of the special offer.
33. Discount on the amount
. Buyers are informed in advance: buy goods for a certain amount - get a discount.
34. Subscription discount
works well with consistently purchased products and services. The client is issued a subscription card, and depending on the number of visits, he can receive some free goods and services when making a certain number of purchases (for example, six or ten).
35. The quick payment discount
is paid for the payment earlier than the term specified in the contract. For example, if a customer pays within the first ten days with a payment plan of 30 days, he will receive a discount. It helps companies deal with accounts receivable.
36. Hidden discounts
are implicit benefits to customers. Many companies provide bonuses or free services to customers and do not count them as discounts, although in essence these are hidden discounts.
37. A special discount
is given to buyers in whom the sellers are especially interested. This may also include discounts on trial lots and orders.
38. Downward discount
is a scale in which the amount of discounts decreases as the agreed deadline is approached.
39. A fictitious discount
implies an initial overpricing of a product in order to later make a discount, but not lose in profit. In fact, this is a deception of the client, and we strongly urge you not to use such a tool.
40. A functional discount
is given to intermediaries who take on part of the seller's functions: the more functionality the intermediary takes, the more favorable price terms the supplier agrees to.