Why do stores hold promotions to sell goods at discounted prices?
It's no secret that in this way representatives of a trading company increase the profitability of the store, i.e. wanting to earn more, they create conditions for this to happen. It may seem illogical to some that by lowering the price you begin to receive more income. However, it depends on how you approach the matter. If, say, you simply set the price tag much lower than the average cost of a similar product from competitors, then you simply deprive yourself of part of the profit. However, if you provide a reasonable, well-calculated discount, then it becomes a tool that will encourage customers to buy more, return to you, and prefer to visit your store as part of their shopping.

Example - how the discount works

For example, you can interest the buyer by informing him that if he selects and pays for more than 2 items, he receives a certain percentage of the discount. Thus, even with a slight decrease in price, the income from the sale of two units of goods is greater than if one item were sold. In addition, more turnover!

Let the item cost 100 rubles. Its cost is 70 rubles. Selling 1 pc. for the full price you earn 30 rubles, and by selling two at a discount, 90 each, you make a profit of 40 rubles. (10 rubles more, that’s +33% profit). The check has become significantly larger.
The amount of money turnover is 80 rubles more. (80%!), and in terms of the number of units sold, not a little, not a lot - 2 times!

This is some simple arithmetic.
Not everyone will necessarily buy more than one thing after reading the offer; everyone has their own reasons for this, but some customers will take advantage of it. As a result, you increased sales and their efficiency without additional costs and attracted the interest of customers who will buy more from you, since it is profitable for them to buy from you.

This option is beneficial for both the seller and the buyer. The first one earned more, the second one saved by buying cheaper. Of course, it is important for the consumer to be able to decide whether he needs a second thing. If this is not so, then saving turns into wastefulness, an unjustified waste of the personal or family budget.

We looked at an example of how a discount works as a tool that helps organize a mutually beneficial transaction for representatives of both sides of the trading process.

Options for benefiting from discounted price promotions

There are many options for obtaining benefits through various types of promotions associated with the provision of reduced prices, more than a hundred. A number of them, those that can be found quite often and some especially original ones, will be considered below. Among other things, the materials in this article will help you understand why and how sales are held, etc. This, in turn, will make it easier for you not to fall for all sorts of tricks from unscrupulous sellers who announce so-called huge discounts, for example, by inflating prices in advance. Unfortunately, such numbers are not uncommon.

Discounts on everything and for everyone are not always held often. If a store does this all the time, it means that there is an additional markup included in the price, plus there is weak competition in the sector. Otherwise, add an additional markup and you will lose competitiveness in terms of prices. Another thing is that if competitors give their customers a discount card with discounts on all purchases, then you, as a store owner, will also have to provide your visitors with similar opportunities to purchase goods from you cheaper.

What types of discounts are there - the first 20

Let's look at examples of discount promotions and their special cases - sales in clothing stores.

By discount card

Selling or gifting a discount card to a client making a purchase in a store for the first time, which implies a cumulative discount or a permanent one, depending on the conditions.

Low prices due to seasonal sales and liquidation of previous collections

The seller needs positive sales dynamics and growth in turnover. It is also important that the product does not sit on the shelves, especially if it is clothing for a season that has already passed its equator, or is even coming to an end. By lowering prices, firstly, you attract the attention of buyers, and secondly, you increase the likelihood that the product will be sold out. It should be noted that the warehouse is not always “liquidated” in this regard. It happens that you just need to get rid of a product that is not selling at all, for which there is little demand.

Discounts on birthdays, company openings, store openings

First of all, this is a way to “light up”, attract attention to the store, and at the same time earn extra profit from a large number of sales, so that you have something to celebrate your birthday with.

Temporary discounts valid for a certain short period

As a rule, in this case the buyer receives information about discounts to everyone who managed to order before such and such a date, such and such a month and year.

Discounts decreasing every day

We are announcing several days of discounts on the main group of goods, but provided throughout the entire duration of the promotion not by equal percentages, but by decreasing ones according to the following scheme: 29th - 30%, 30th - 15%, 31st - 10%.

Discounts for purchasing more than one item

There may be variations here. The size of the discount may increase depending on the number of items in the cart (2 items - 5%, 3 items - 7%, from 4 items - 10%). Or a simplified fixed option - bought more than one dress - get a 15% discount on everything.

Discounts for purchases over a certain amount

When you buy clothes worth RUB 7,000 or more, you immediately receive a 15% discount.

Setting a price is a decision that depends on the chosen marketing pricing strategy. Marketing pricing tactics involve the use of discounts

Discount is the amount by which the price is reduced and, at the same time, the amount by which the seller subsidizes the buyer to stimulate sales

Tactical decisions related to adjusting the base price through the use of discounts depend on the type of discount. The following types of discounts are distinguished:

1 functional (trade) discounts - discounts provided to a trading company for performing the functions of sales, storage, accounting, promotion

2. Dealer discounts - discounts provided to sales intermediaries to cover costs and ensure profit.

3. Progressive discounts - discounts that are established in case of a certain volume of purchases

4. "Skonto" discounts - discounts provided for paying for goods in cash or for early payments. Standard discount "discount": "2/10, net 30" This means that the goods must be paid within 30 days, but the buyer will pay 2% less if he pays within 10 days, if he pays within 10 days.

5. Quantity discounts - discounts provided for the purchase of a certain number of goods

6 bonus discounts - discounts provided to regular customers for a certain volume of purchases over a certain period of time, usually a year. In this case, a certain scale of discounts is established

7. Discounts to encourage sales of new products - discounts provided to intermediaries if they take on new products for sale, the promotion of which requires additional costs

8. Special discounts - discounts that are established for regular and exclusive customers in which the seller is interested

9. Export discounts - discounts that are provided to foreign buyers in addition to those discounts that apply in the domestic market

10 club discounts - discounts provided to members of discount clubs for the purchase of goods

11. Preferential discounts - discounts that are established with the aim of stimulating preferential categories of buyers or stimulating the sale of certain types of goods

12. Promotional discounts - discounts that are established during promotions

13. Holiday discounts - discounts that are established on the occasion of a holiday

14. Seasonal discounts - discounts that are established for purchasing goods during periods of lack of demand. Can be pre-season and post-season

15. Trade-in discounts (goods exchange offset) - discounts that are established on a new product in the event of a return of a similar old product

16. Hidden discounts - discounts that are set in the form of free services or a certain number of free samples

17. Closed (transfer) discounts - discounts that are established in intra-production cooperation of the enterprise

18. Discounts on bargaining - discounts that are established at the final stage of price negotiation

19. Final discounts - discounts that are set for the last batch (unit) of goods

20 complex discounts - discounts that provide for the simultaneous establishment of several types of discounts

21. Negative discounts - price premiums established for a small batch of goods, a higher level of product quality, urgent delivery, delivery directly to the place of use, etc.

Security questions

1 we present and characterize the main elements of the price

2. What is the essence of the concepts “price composition” and “price structure”?

3. How does the price structure differ depending on the length of the distribution channel?

4. Name the characteristics of price classification

5. What types of prices are distinguished based on the “nature of service turnover”?

6. What is the difference between market prices with horizontal fixation of market prices and vertical fixation?

7. Specify the difference between regulated, fixed and parity prices

8. Describe the “E” terms in the system of international trade terms. Inkotnerms

9. Is the use of discounts a strategic or tactical pricing decision?

Promotions and sales: 33 ideas on how to attract buyers

You will be surprised: sometimes the buyer is even ready... to undress in order to get the desired product. But seriously, you shouldn’t limit yourself to the typical “let’s make a discount and hand out flyers.” There are many options for promotions, even with discounts you can come up with something unusual - and effective.

researched

hypermarket

13. "It's Now or Never"

14. “Motivated” discount

Promotion in the Calipso store.

Present

Promotion in the jewelry salon

19. For the future

supermarket

Half a liter of blood for an iPhone.

"Silpo" and Stikeez monsters

Promotion at the Olvy gas station.

33. Original shares

There are many ways to attract customers' attention - discounts, gifts, free samples and much more, but marketers never cease to generate new ideas and surprise consumers. We studied the experience of retailers from different areas and compiled a list of trade marketing campaigns that work.

Discounts in online and offline retail

In mid-2016, marketing company Nielsen studied the impact of promotions on consumer choice in grocery supermarkets. The results are impressive. Thus, 51% of 1,000 respondents confirmed that their interest in discounted products has increased over the year. Reducing prices is the most common way to attract the attention of store visitors to specific products. However, discounts are different from discounts. Along with traditional seasonal sales, there are quite creative promotional solutions in Russian and foreign retail.

Promotions are often found in fashion retail. Allows you not only to increase sales, but also to sell stale goods, receive funds and free up space in the warehouse for new arrivals. Larger events are also called “warehouse liquidations.” The mechanism works well - people are ready to buy things from last year's collections at a discount.

Liquidation in a baby supply store.

This model is used not only by retailers, but also by representatives of the restaurant business. On certain days and times, the store offers big discounts on a specific product or category. The hours are usually known in advance.

However, the St. Petersburg household appliances store Simtex took a different path. Customers were informed in advance that there would be happy hours and a 30% discount on Italian household appliances on Friday. But the time changed every week. For the third time, the shops were in a rush from early morning. Marketers coped with the task of attracting customers to inconveniently located retail outlets.

This model is used when you need to attract the attention of a specific audience segment. There are a lot of options - discounts for mothers with children, owners of Maltese shepherds, pensioners, etc. There are also more creative options - a promotion for visitors in white or shoppers with green handbags.

“Family” event at Pyaterochka.

This mechanism is often used by fashion retailers. Girls love to go shopping in a group, so the marketing campaign “bring a friend and get a discount” is in demand, and the discount depends on the number of attracted buyers - 5% for one, 10% for two, 15% for three, and so on. Another type of such promotion is discounts for new visitors - a regular customer gives a coupon to a friend.

Multi-Pass Refer a Friend Promotion - Possibly Too Complex to Complete

This is how Alfa-Bank in Belarus attracts clients.

The store makes attractive offers to specific customers. For example, birthday people receive a discount on a cake or other holiday items. The large Lenta hypermarket went even further. Personal offers are formed based on an analysis of your purchase history. The client receives information about discounts on products of interest to him by mail or in an email newsletter.

50% discounts on your favorite products in Lenta.

The promotion is more typical for online retail. Orders begin to be accepted when the product is not yet in stock. To encourage customers to make an advance payment, the store reduces the pre-order price.

Discount for pre-ordering RRD equipment.

The buyer is active - puts likes, subscribes to groups on social networks or e-mail newsletters, writes reviews - and receives a lucrative offer. Such actions pursue several goals at once. They stimulate sales, increase loyalty of the target audience, and increase the base of subscribers or community on social networks.

200 rub. to buy underwear in a couple of clicks on social networks.

One of the options is special offers for those who have spent a certain amount in the store one-time or over time. In the latter case, the buyer is offered to keep receipts or is given a special card on which the seller puts marks for each purchase. The client receives a large one-time discount or bonus card. The percentage on it can increase as milestones are passed - 5% for purchases of 5,000 rubles, 7% for 10,000 rubles. and so on.

More purchases - more discount.

The goal of the event is to increase loyalty and increase the average check amount. Also used to sell slow-moving goods. An example of such an advertising campaign in shoe and accessory stores is a discount on a handbag when buying a pair of shoes from the same collection, in a supermarket - a discount on nuts when buying a pack of beer.

Accessories for smartphones and tablets at a discount.

This model is often used by grocery retailers. Every day the store offers a discount on a certain category of goods. To attract the attention of the audience, they come up with creative names - “Fruit Tuesday” or “Meat Friday”.

Discounts on meat in the BIGZZ chain, Minsk.

Such a promotion is a good way to get rid of stale goods or draw attention to a new one. To help customers better navigate, promotional products are labeled. You can use bright stickers or price tags of the appropriate color.

Minus 30% on goods with a “red” price tag.

13. "It's Now or Never"

This technique is used by online retailers to combat cart abandonment. The visitor walks through the pages, selects products, but never completes the order. After some time, you will receive an email with a discount on the models added to your cart.

The buyer will receive a 5% discount and free shipping if they return and place an order.

But MIF does not reduce prices, but presses the buyer with a fragment of the book:

An extra free chapter is a good incentive to buy the whole book.

14. “Motivated” discount

To earn a bonus, the buyer must complete certain actions. People go to such crazy lengths for profit. Thus, in the Moscow underwater equipment store Diskus, customers were asked to lower their heads into an aquarium. The size of the discount depended on the time a person could spend underwater while holding his breath. There have always been people who want to test their strength - people value more what they get for a reason. And discounts for which they had to work hard are used more willingly.

People are gambling, they like to play and win. Buyers positively perceive promotions in supermarkets with lottery elements. For example, when making a purchase, an arbitrary discount appears on the receipt. The size can range from 5% to 50%.

Random discounts on embroidery kits.

An original solution was found in a shoe store - the discount amount was tied to the size of the customers' feet. Another example is a marketing campaign in a sports equipment store. The buyer had to bring an old bicycle. They weighed it on the spot; the percentage discount on new equipment was equal to the weight of the old one in kilograms.

Promotion in the Calipso store.

Here’s another solution: “Sell in your old clothes and get a discount”:

Reducing prices is the most common, but far from the only way to attract visitors to the store and motivate them to buy more. This mechanism is good to use when, along with increasing sales, the goal is to get rid of certain products. However, you can increase the average bill and audience loyalty without reducing prices.

Present

Even more than buying a deal, people love getting things for free. Retailers are actively using this, coming up with different mechanics with gifts. Consumers' attention is attracted by both truly valuable goods and pleasant little things. The effectiveness of marketing campaigns can also be affected by the original presentation.

One of the most common mechanics. When purchasing a product of a certain category, the client receives a second one as a gift. These may be identical products - a common “two for the price of one” promotion. Also, related products or consumables are often offered as a gift to the main item. There are also completely original combinations - vodka and Borjomi, Raffaello and condoms, etc.

Promotion in the home textile salon.

This option is not suitable for every store. But it works great in jewelry stores, where sales directly depend on the number of fittings. One of the stores managed to survive the crisis and increase sales by offering pearl jewelry for each fitting. Their cost is low, and due to increased sales, the campaign more than paid for itself.

Promotion in the jewelry salon

19. For the future

Sometimes a gift to a random visitor can increase sales if you need to take care of the free product and buy consumables. A pet store decided to conduct an unusual marketing campaign. The owner invited students from a nearby school on a tour. At the end everyone received a free small fish. After some time, the parents came for aquariums, equipment and food. The cost of these animals is low, but related products are quite expensive.

We are talking about joint actions of companies from different fields. A good example is the Seventh Continent supermarket and the Sunlight jewelry salon. When purchasing products for a certain amount, the client receives a certificate for jewelry. The promotion usually involves cute trinkets - pendants or beads for Pandora bracelets.

Joint action of Pyaterochka and Sunlight.

Such promotions are usually carried out by manufacturers, but retailers also often use this mechanic. So, in one jewelry salon, expensive gifts were raffled off among customers - cars, apartments and travel. An even more creative idea came to the minds of marketers at the Ukrainian store Citrus. They gave away a limited edition red iPhone 7 to blood donors. During the promotion period, in several centers each donor was given something like a lottery ticket.

Half a liter of blood for an iPhone.

Marketing events with gifts are good to launch when opening a new outlet to attract customers. A good example of a promotion was shown by the marketers of the Svyaznoy salon. Employees scattered “lost” wallets with an invitation to come to the opening of a new store and exchange their finds for a gift - a T-shirt with the inscription “The most honest resident of the city.”

In honor of the opening, Bookvoyed is exchanging balloons for books.

Marketers actively use techniques from computer games - achievements, awards, leaderboards, statuses and others. In grocery retail chains, customers are offered to collect toys. A collection of characters is created, an album or a box with slots for each figure is sold separately. There are a lot of examples from real practice - the Ukrainian network “Silpo” and the monsters Stikeez, the Russian “Dixie” with their “stickies” and “Magnit” with toys and tokens from Star Wars. The essence is always the same - in order to get or buy a figurine for a song for a collection, you must first purchase for a certain amount - 500-1000 rubles. Thus, the promotion significantly increases the average check, and at the same time increases the loyalty of the target audience - people like to play and share their successes on social networks.

"Star Wars" on the Magnit network.

Buyers are invited to collect a certain number of items and exchange them for valuable prizes. Chain hypermarkets give sets of knives, frying pans and other useful household items of good quality. A sticker is issued for every purchase of 50, 100 or 200 rubles. Thanks to the promotion, collectors come to make purchases at specific stores and collect more items in order to quickly receive a prize.

Coupon for chips in the “Professional's Choice” cosmetics store.

Promotion scenarios are limited only by the imagination of marketers and business owners. The main thing is to offer customers what they need, or to involve them in an interesting game with elements of competition.

Marketing activities have different goals - to increase sales, attract customers to a new store or attention to a new product, increase reach or loyalty. All previous examples directly or indirectly help solve all problems. In this section we will talk about promotions that are mainly aimed at increasing the average check.

This is how they motivate to spend more on the Zaodno network.

This model is most typical for online stores. The promotion is limited to the order amount - at least 1000-3000 rubles. Many people prefer to put an extra and not very necessary product in the cart rather than throw away 300-500 rubles. to the wind.

After trying a new product or drink, a visitor may buy something that was not originally planned. The mechanics are used by market traders and watermelon sellers - after tasting a refreshing delicacy on a hot day, it is impossible to pass by without buying.

Honey tasting at the BeeHappy store

People like to feel like they are part of a big and useful cause, so the inscriptions “By buying this product, you are helping children” or “I love nature” work. Of course, a charity project should exist not only in advertising materials.

"Panda card" in the "M-video" store.

In grocery retail you can often find products that sell no more than 2-4 pieces per person. Miraculously, a line grows at the counter where it was previously empty. The fear of not being on time, of missing out on something important, works to the advantage of marketers. Even those who don’t need the product at all are in a hurry to pick up their portion of the “exclusive”.

Promotion in the Novosibirsk Holiday store.

This model is used to increase the average check. Customers are offered a set of related products, such as tea and sugar or gin and tonic. The point is that buying a set is more profitable than buying each product separately. However, even those who need just one thing choose sets, thereby leaving more money in the cash register.

Each item in a set is cheaper.

There are other strategies to increase the average check, the simplest of which is to increase prices. However, in this case, some buyers may go to competitors in order to save money.

Promotions to attract attention to the brand and increase loyalty

Creating a buzz around the store means attracting customers and almost guaranteed to increase sales. In the struggle for the attention of the audience, companies take risky steps, sometimes on the verge of a foul. But such events always bring results, and the winners are not judged.

Some stores invite customers to do crazy things for gifts and discounts. One of the varieties of such promotions is the strip game. The pioneer in this matter was Euroset, which 10 years ago gave phones to those who came to the salon naked. However, most retailers do not resort to such radical options. So, in 2016, at the OLVI gas station they gave a full tank of gasoline to everyone who came to refuel in a bikini and heels. The conditions were the same for everyone without exception.

Promotion at the Olvy gas station.

Similar promotions were carried out by fashion retailers in different cities and countries. Of course, one can argue about loyalty here, but the marketers of these companies clearly coped with the task of attracting attention and creating excitement.

Promotion in one of the shoe stores in Grodno.

This mechanism is often used by hardware stores. In exchange for an old washing machine or refrigerator, the buyer receives a new one with an additional payment. The additional payment is usually 10-30% less than the normal cost of the equipment, and the store increases sales and receives working spare parts. HM also carried out a similar promotion - in exchange for a package of old clothes, the visitor received a small discount on new ones.

Exchange old for new in MediaMarkt.

A prize received in a fair fight brings more joy than an ordinary gift. People are ready to compete for simple titles and ratings, but they can do a lot for a discount or a prize. Social networks provide great opportunities for pranks. Repost competitions attract attention to the brand, increase reach of the target audience and increase loyalty.

Another common model is sweepstakes using special hashtags, including creative ones. You can also use this tool offline. Thus, a grocery supermarket organized a speed contest - the winner was the one who, in a set time, filled the basket with the most items and ran to the checkout. The lucky winner took everything for free, the rest of the participants received a discount. Another example of chasing a gift is a promotion at a sports equipment store. Buyers had to choose any product and run to the checkout in a minute. A plumbing store organized a wet T-shirt photo contest for its customers. Photographs were taken on the spot, the winner got a shower.

Creative competition in a fabric store.

33. Original shares

Unusually designed advertising campaigns attract attention and are remembered, and a coupon for your next purchase becomes a reason to visit the store again. On New Year's Eve, the children's supermarket launched the “Compliments and Wishes” campaign. At the checkout, customers pulled out a beautifully designed scroll with wishes and a coupon for a gift or discount. Customers liked the event so much that the store began repeating it before every holiday.

This is not a complete list of ideas that will attract visitors to the store and increase sales. In every area of ​​retail, you can come up with a dozen more creative actions. To increase response, reach and achieve better results, it is worth combining offline and online tools, constantly analyzing the reaction and needs of the target audience. And careful calculation of marketing campaigns will help you not to go into the red.

Discount systems, discounts, bonuses, savings and other discounts are an important tool for generating and stimulating demand and loyalty of your customers. Why are discounts needed? To attract your customers and increase sales, to form a positive assessment of your company among your customers or consumers of your services, to stimulate the customer’s further desire to use your products or services (customer loyalty). The fight for regular customers is one of the important aspects of a marketing strategy in the realities of modern business. With the help of a properly organized system of discounts, you can stimulate sales of poorly selling goods, new products, or regulate the flow of buyers or clients during the working day.

Which ones are used and how to organize them correctly will be discussed below.

Types of discounts:

1. By discount amount

1) For the entire purchase amount (check)

Example: discounts on a store discount card, etc.

2) For individual items on a check

Examples: a discount on a product participating in a promotion, a discount on promotional products from a certain manufacturer, a discount for the holder of a branded discount card, etc.

2. By condition

1) Unconditional discount

— Sale due to store liquidation

2) “If, then” discount

a) By time

— discount on all alcoholic drinks on the menu until 15-00 (increases sales of goods that are in low demand)

— discount by time of day or day of the week (allows you to correctly distribute the flow of customers, for example, ensure the outflow of customers during high purchasing activity, transfer some customers to another time. This allows you to redistribute the load on store staff and reduce queues in the store, which will undoubtedly attract additional clients.

b) by purchase amount

— when purchasing over 5,000 rubles — a 10% discount on everything (incentivizes you to buy more goods)

c) by quantity

— buy 2 packages, the second one is free

d) according to a certain purchase characteristic

— when purchasing a set there is a discount...

3. By deadline

1) Urgent

— Discounts expire... (encourages the buyer to make a purchase at a certain time or make an unplanned purchase)

2) Indefinite

4. By the face

1) Personal, i.e. owned by a specific person

2) Impersonal - a discount for any circle of people.

Very typical when used. Owners of discount cards can be provided with fixed discounts on goods and services. In a particular case, the so-called “cumulative discount” is used. The amount of purchases using a discount card (or group of cards) is summed up and stored in the trade automation system database. The discount may increase if the client has made purchases for a certain amount over a certain period.

5. According to the form of payment

For example:

— Discount when paying through Yandex Money.

Discount amounts

Discounts can be expressed as a percentage of the purchase amount, and can also be provided in the form of bonuses or coupons. Bonuses are usually calculated as a percentage of the purchase and can be taken as credit for future purchases. Sometimes, upon reaching a certain number of bonuses or coupons, the buyer is given the opportunity to choose a gift.

Discounts may be provided in amounts determined in each individual case. For example, sometimes it is necessary to give a discount for a product that has damaged packaging or has minor defects in order to resolve a conflict situation with the buyer.

Automation of discounts

Most discounts in a modern store are carried out automatically, using software systems for trade automation. To do this, the cashier-operator only needs to identify the owner’s discount card (scanning, magnetic detector). The discount is deducted automatically. But sometimes it is necessary to carry out “manual discounts” that are not programmed into the sales system. Very often, to implement such a discount, the intervention of a responsible person (manager, controller, senior cashier) who has a certain tool for accessing these functions of the automated cashier workstation is required

Currently, a huge number of enterprises use trade automation systems, which include discount automation systems. These tasks can be solved by using software systems, for example, based on software products from the 1C: Trade Management and Frontol families.

Where can I order discount cards?

You can order from our printing house at the most reasonable price! Delivery of orders throughout Russia. Our own production and experience in printing for more than 15 years!

Here is another question on which I see confusion both in the heads and in the price lists of companies.
How will this mess smooth out? I will give a non-fictional dialogue. I think it’s very recognizable, isn’t it?

Dialogue between Selsa and Nach. sales department:

Sereg, TransTech is asking for a discount... an additional one.
- So what? How much does he have?
- minus 7%
- Wow! how does he take it and how does he pay?
- He takes it normally, there’s a price for 200 thousand here.
- on credit?
- Well, yes, that’s how he takes it. We’ll give it, he says, he’ll take more of a discount.
- but he pays, how does he pay?
- well, yesterday I paid 100
- how much do you owe?
- 400, but he says he will pay in a week.
- oh... well, give him another 2%... no, give him 1%

In an effort to show professionalism, and realizing the pointlessness of the dialogue, many of us will immediately rush to comment: it is not clear what 1% is, for what, what does it mean to “take more”? And we will be right with you, of course. Let's figure out what we need to “give” for and how much to “give.”

Classification of discounts

The discount can be one of three types:

• marketing discount;
• sales discounts;
• logistics discounts.

Marketing discounts include direct discounts unrelated with current and well-functioning sales logistics: goods in exchange for money. These discounts affect development prospects, stimulate partner relationships (CRM), and structure the sales channel.

Sales discounts include discounts directly related to current transactions, to ensure a given profitability of sales and the current planned inventory turnover for concluded (concluded) transactions.

Logistics discounts include discounts for optimizing cash and commodity flows that affect the current financial performance of the company.

Marketing discounts

Hidden promotional discount

Functional discount (discount for distribution)

The manufacturer provides various functional discounts to players in the trading channel who provide it with different types of services (logistics, services for developing a sales network, building a dealer network). Functional discount in the marketer's dictionary

Dealer discount

Provided by the manufacturer to its permanent representatives or sales intermediaries (for example: an affiliate program for servicing customers in a chain of stores: promotions, use of promotional rooms, merchandising, etc. is stimulated by a dealer discount).

Discounts taking into account intercultural communications

In practical activities, marketing faces a very important circumstance, which should be attributed to the so-called cultural differences, which is also the subject of marketing research.
In Central Asian, Arab, some Balkan countries and individual Transcaucasian republics, during trade negotiations it is considered a matter of honor to achieve a large discount on the offer price. And although this circumstance is associated with a complex of Eastern mentality, many importers will not sign an agreement that does not contain a provision on discounts generally exceeding 20 - 30% of the proposed price. Since this fact is known in the marketing and trading environment, some companies consider it necessary to first artificially inflate prices by the expected percentage, and then present it with a discount specified in the contract.

Service discounts

A significant part of industrial products requires maintenance during operation. A service discount is preferred to creating and maintaining an effective service network, which requires significant investment and effort. This approach to solving the problem would be acceptable if it were possible to monitor the implementation of additional functions by the recipient and a way to evaluate the effectiveness of such a discount.

• on the part of the buyer - the amount of costs for storing goods purchased in advance before the start of the sales season (including fees for loans attracted for this purpose);
• on the part of the manufacturer - the amount of costs and losses that he would have to incur if the manufactured goods were stored until the start of the season in his own warehouses, and production was either stopped due to the deadening of working capital in finished product inventories, or was supported by additionally attracted loans to replenish working capital.

Consequently, the amount of discounts should provide the buyer with savings greater than the increase in his costs of storing goods until the seasonal increase in demand. On the other hand, the manufacturer can provide such discounts - for an amount no greater than the amount of its losses due to the slowdown in capital turnover as a result of storing goods in its own warehouses before the start of the season and not receiving sales revenue.
The logic of discounts for off-season purchases requires their differentiation in time: the earlier the product is purchased before the start of the season, the larger the discount should be.

Discounts to encourage new product sales.

Such discounts can be considered as an addition to planned discounts that help promote a new product to the market. As a rule, such discounts in the form of financing a national advertising campaign indicating the names of the trading companies selling the product are not enough. For example, such advertising does not really give buyers information about where they can actually buy the mentioned product in their city (district).

Therefore, dealers and end sellers have to conduct their own advertising campaigns using local media outlets (whose advertising rates are usually lower than those in the national press or national television). This gives them the opportunity to indicate the addresses of their stores in such advertising, which actually provides an increase in sales.

Sales discounts

Discount for turnover, bonus discount (bonus)

The discount is provided to regular customers on the basis of a special power of attorney. In this case, the contract establishes a scale of discounts, depending on the turnover achieved during a certain period (usually one year), as well as the procedure for paying amounts based on these discounts.

This discount system is designed in the form of columns price list. This is the price list. I call (well, I like it that way) the price columns - price protocols: 1st protocol, 2nd protocol. Why is this so? Coordination and recording of prices is the legal basis for transactions, recorded in the Civil Code of the Russian Federation. If you come across “price protocols” somewhere in other articles, that’s from this.

Logistics discounts

Other types of discounts can be classified as tactical logistics.
They are united by an economic source - profit(!), as well as the general task of creating additional incentives for the buyer to make a purchase. The use of logistics discounts leads to a reduction in the actual purchase price of goods and, accordingly, to an increase in the buyer's premium. This premium represents the difference between the economic value of the product for the buyer and the price at which he was able to buy this product.
The main types of discounts include:

Discount for the volume of purchased goods

Proportional price reduction for buyers purchasing large quantities one type goods. Typically, the discount is set as a percentage of the total cost or unit price of a specified volume of supply, for example, a 10% discount for orders over 1000 pieces. Discounts may be offered on a non-cumulative basis (per order placed) or on a cumulative basis (per number of items ordered over a given period).
Quantity discounts should be offered to all customers, but the supplier/seller must ensure that the amount of discounts does not exceed its cost savings due to the increased volume of goods sold. These savings can be achieved by reducing the costs of selling (trade processing), warehousing, maintaining inventory and transporting goods. Discounts of this kind can also serve as an incentive for the consumer to make purchases from one seller (recurring purchases).

Discount for cash payment

If you need it, price reduction for buyers who promptly pay bills in cash. A buyer who pays within 10 days receives, for example, a two or three percent reduction from the payment amount. This discount can also be applied partially, for example, only for a percentage of the entire amount received within 30 days. With a larger supply volume or more expensive equipment, this type of discount can greatly activate the local counterparty, who is interested in selling faster and receiving their considerable income.
Such discounts are widely used to improve the liquidity of the supplier/seller, the rhythm of its cash receipts and reduce costs in connection with the collection of receivables.

Discount for refusal of receivables (for reducing the terms of receivables)

A discount can also stimulate a reduction in the terms of trade credit provided by the supplier to the client.

Progressive discount

A discount for quantity or serialization is provided to the buyer subject to the purchase of a predetermined and increasing quantity of goods. Serial orders are of interest to manufacturers, since the production of the same type of product reduces production costs. The discount is given upon the fact, or in advance, under an agreement fixing such progression. Sels often gives such a discount without a contract, by verbal agreement. In any case, such agreements need to be recorded, at least within the company in the CRM system.

Export rebates

Provided by sellers when selling goods to foreign buyers in addition to the discounts that apply to buyers of the domestic market. Their goal is to increase the competitiveness of goods in the foreign market.

Discount for expediting payment.

The main objective of discounts for accelerating payment is to reduce the repayment period of receivables and accelerate the turnover of the company's working capital. Therefore, this commercial tool can be attributed to a greater extent to the sphere of management than pricing itself. But since such discounts are set in relation to prices, price specialists, together with financiers and accountants, traditionally determine them.

Discount for expediting payment – a measure of reduction in the standard selling price, which is guaranteed to the buyer if he makes payment for the purchased batch of goods before the deadline established by the contract.
The payment acceleration discount scheme includes three elements:

• the actual quantitative amount of the discount;
• the period during which the buyer has the opportunity to take advantage of such a discount;
• the period during which payment of the entire debt amount for the delivered shipment of goods must be made, if the buyer does not exercise the right to receive a discount for accelerated payment.

The rate for accelerating payment is usually determined by two factors:

• the level of such rates traditionally established in this market;
• the level of bank interest rates for loans to replenish working capital.

The connection between the discount for speeding up payment and the price of credit resources is quite logical. If a manufacturer cannot achieve acceleration of repayment of accounts receivable, then it has to replenish its working capital mainly through credit. Accelerating payment for shipped goods reduces the need to raise funds and provides savings by reducing the amount of interest payments.

However, usually the level of discount for accelerating payment is significantly higher than the price of credit resources.

This excess of the discount level over the price of loans is justified by the large positive effect that accelerated payment has on the financial condition of the selling company. This effect occurs due to the fact that early payments:

• accelerate the receipt of funds into the seller’s account and improve the structure of his balance sheet, which is essential for him to obtain loans, and also affects the assessment of the company’s position by investors (including the price of its shares on stock exchanges);
• reduce credit risks associated with accounts receivable and increase the reliability of financial planning;
• reduce the company's costs for organizing collection. accounts receivable.

Discount for off-season purchases

With a well-established system of seasonal discounts, manufacturers have the opportunity to organize and complete the production of goods for the next season long before it begins and promptly begin preparations for the manufacture of products for the next season.
The amount of seasonal discounts is usually quite small and is determined by:

Discounts for complex purchases of goods.

Many firms that sell lines of complementary products use a special type of discount to encourage customers to purchase several products from that line, i.e., bundled purchasing.
Discount for complex purchase of goods – a measure of the reduction in the standard selling price that is guaranteed to the buyer if he purchases a given product along with other complementary products from that company.
The logic of such a discount is that the price of each product in the set is lower than with an isolated purchase, even from the same company.

Discounts for returning previously purchased goods from this company (trade-in)

Discounts are provided to the buyer when he returns an outdated model product previously purchased from this company. Such discounts apply to the sale of automobiles, electrical equipment, rolling stock, standard industrial equipment, etc.

Discounts on the sale of used (defective) equipment.

In different countries there are opportunities to profitably purchase used machines, mechanisms and other equipment. If, in addition, the maintenance is well organized, such a purchase is a reasonable alternative to buying new equipment. You can work with new equipment for a long time, while operating costs are low.

Tests

Offsets refer to other types of discounts from the list price. For example, a goods exchange offset is a reduction in the price of a new product subject to the return of the old one. Trade-in credit is most often used for the sale of cars and some durable goods. Sales promotion credits refer to payments or price discounts to reward dealers for participating in advertising and sales promotion programs.

Who is responsible for discounts?

More precisely, this section should be called: “Who gives discounts?” However, everything is clear to an inquisitive salesman:

• The marketing department, guided by the marketing policy, is responsible for marketing discounts;
• The sales department is responsible for sales discounts, guided by the standards of profitability of sales and inventory turnover.
• for logistics - parity department of commodity logistics, purchasing department, financial department, acting in accordance with the financial policy of the company.