Types of Discounts
Various types of discount are offered by retailers or business man on various objects and services. The most common three types of discount are,
- Promotional Discount
- Trade Discount
- Quantity Discount
Let’s learn about all these discounts here.
Promotional Discount
Promotional Discount is the discount given by the retailer or businessman to promote certain events or objects. This is the type of discount that retailers give on Holi, Diwali, Id, and other festivals. The “Flipkart: Big Billion Day”, and “Amazon: Great Indian Festival” are the promotional discount given by Flipkart and Amazon on the occasion of Navratri, Diwali, and other.
Trade Discount
Trade discount is the discount given to some specific traders because of their tie-ups. A specific manufacturer can give some special discount to a trader who is its regular customer.
Quantity Discount
Quantity discount is the discount given by the retailer on the quantity of the item purchased. We have seen some retailers giving 10% or more discount if we purchase an item worth rupees ‘x’ amount or more. For example, we have seen discount offers as, ‘Buy 2 Get 1 Free’, ‘Buy 3 Get 2 Free’, and others all these are quantity discount.
Discount Formula
Discount in Mathematics is defined as the reduction in price of any service and product. Discount is offered by the business owner to easily and quickly sell their product or services. Giving discounts increases the sales of the business and helps the business retain its customer.
Discount is always calculated on the marked price of the object. In the sale of an object Cost Price, Selling Price, Profit, Loss, and discount are calculated. We have to study the Discount Formula in Class 8.
Here in this article, we will learn about the discount definition, types of discounts, discount formula, discount rate, and its solved examples and others in detail.
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