Sunday, June 17, 2012

There are all types of discounts offered to consumers for the products they purchase.  Examples of discounts fall into some sort of category, according to the textbook, which are trade, cash, quantity, seasonal, and allowance.   The first of which, the trade discount, is typically a percentage off of the listed price of the product.  Products purchased with a trade discount are discounted because the purchaser is taking care of transportation, selling, storing, final processing, and giving credit.  The other type of discount is a cash discount.  Discounts are given when the purchaser pays with cash.  A common example of this is paying for fuel with cash.  A lot of times you will see a gas price listed, but a discount of like ten cents is given if the fuel is paid for with cash.  Quantity discounts are another type of discount offered.  An example of this would be if the purchaser is purchasing a large quantity of the product, then the firm would offer a discount for the large quantity purchased.   Example of such occur when purchasing a large quantity of ropes, then usually the purchaser is given like a discount of a dollar off each rope, after so many are purchased as against paying full price for all of them.  Seasonal discounts are discounts offered when a product is being sold and it is out of season.  Example of this discount can be found the day after halloween, when all the halloween candy is cheaper than the day before halloween, since halloween is over the first of November.  The final example of a discount is the allowance discount.  This type of discount occurs when a buyer turns in an used item for a newer one.  One example of this discount could be found with the Best Buy's buyback program with electronics.  When you purchase an elecronic of some sort, you can turn it in when it gets old for a discount on a newer, more up to date elecronic of the same type of product.  These types of discounts can be found every where and help the consumer save money and can be used as promotional tools for the firms selling the products.

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