Question

identify and describe the main types of discounts that are used in the pricing of business products

Answer 1

The below points emphasize the six mainly ordinary types of cost discounts.

Explanation:

1.Quantity Discounts:

The foundation for amount discounts lies on the normal concept of economies of balance. When a seller for goods may sell several of goods to a particular purchaser, a range of price savings can occur.

2.Trade Discounts:

Trade discount is frequently given to middle­men of the tasks they execute in the sharing of commodities. For instance, trade dis­count is frequently called useful discounts.

3.Promotional Discounts:

These discounts are provided to promoters as payment for the promoters efforts to advertise the manufacturer's goods via local promoting, unique displays, and other promotions.

4.Seasonal Discounts:

The more stretchy the demand on goods, the heavier cost discount it obtains, that is, warm garments in summer, extended distance phone calls at hours of darkness, and afternoon show films.

5.Cash Discount:

Cash discounts are payment for the expense of a statement and account inside a particular time peri­od (Coallier, 2012).