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In today’s time, discounts play a very important role in the growth of any business, and there are many different types of discounts that companies offer for various strategic reasons. Some discount types are given to increase sales, and some are given to foster brand loyalty. Some discounts are offered straightforwardly, like percentage discounts and fixed discounts, and some are given in the form of promotional offers and seasonal sales. Some are offered for bulk purchases, and some are given for stock clearances. The reasons can be many, but the goal of every discount is the same: the growth of the company.

Let’s see the different types of discounts that companies usually offer:

1.) Percentage Discount: This is one of the most common types of discount that is given on the original selling price of the product. For example, if a product’s original price is Rs 100 and a 20% discount is given on the product, it will cost the customer Rs 80. For calculating percentage discounts, you can also use an online free discount calculator available on our website.

2.) Fixed Amount Discount: As the name suggests, instead of a percentage discount, it is a fixed amount of discount given on the original price of the product. For example, if the original price of the product is Rs 100 and the shopkeeper tells you that he will give you a discount of Rs 15, then it is simple math: Rs 100 minus Rs 15, which means the product will cost you Rs 85.

3.) Cash Discount: It is a discount that promotes instant cash payments. It is usually given by the company so that customers may not ask for a credit and pay instantly. Sometimes online companies also give cash discounts in the form of percentage discounts or fixed-amount discounts so that customers pay online at the time of placing the order instead of cash on delivery.

4.) Quantity Discount: It is usually given on the bulk purchase of the product. When customers buy in bulk, a quantity discount is given, which promotes more sales. Also, shopkeepers can accept the lower profit margin if the product is sold in bulk.

5.) Seasonal Discount: They are given seasonally to stimulate sales, most of the time when it is a seasonal product. For example, in the winter, if you buy woolen clothes, they are sold at full original prices, but if you buy those same woolen clothes in the summer when the winter season is gone, they will most probably be on seasonal discount sale because, firstly, nobody needs to wear those woolen clothes in the summer, so there is no demand. Secondly, stock clearance is important for seasonal fashion clothing because, in the next season, new designs will be in demand, so shopkeepers will sell them now to clear the stock.

6.) Trade Discount: As the name suggests, this type of discount given for trading. When a product is sold to a wholesaler, trader, or retailer, it is given on a trade discount because, firstly, they will buy in bulk quantity; secondly, they will incur various expenses in selling the product further, like warehousing, hiring salesmen, advertising, etc.; thirdly, they are into the trade to earn some profit margins, and if they are not getting any, why would they do it?

7.) Employee Discount: Most companies give discounts on their products to their employees. It is very common in today’s working culture, and it promotes a good relationship with your employees; they deserve it because they are the reason for the growth of any business.

8.) Promotional Discount: Usually promotional discounts are for a specific time, and their whole and sole goal is to market the product or service and increase the periodic sales target.

9.) Bundle Discount: It is given on a package type of product deal; various products are sold as a bundled package. For example, if a company sells soap, shampoo, hair tonic, and face cream in a bundle at a discounted price, it will be a bundle discount. This type of discount has various benefits for both the company and the customers. If some product is not selling, it can be sold by the company in the form of a bundle with another fast-selling product, and if the customer buys all the products individually, it will cost them more, but in a bundle, they are paying less. So it is a type of situation where you buy more and pay less.

10.) Coupon Discount: It is also one of the most used discount types, especially in today’s time when e-commerce is the most preferred method of sales. In this method, a discount coupon is provided by the company in the form of a virtual code, which is applied by the customer to the cart at the time of online purchase. It can be provided by the company on its website, or it can be provided on various discount coupons and deal websites, just like this website, ondiscount.in.

11.) Conditional Discount: This is a discount that is given when some specific condition is fulfilled by the customer. For example, if you buy products worth Rs 5,000, you will get a 10% discount coupon that can be used on your next purchase. So here in this example, a condition where your cart value should be Rs 5,000 should be met to get the 10% off coupon for your next purchase.

12.) Student Discount: It is a discount that is usually given by companies whose target audience is the young generation of college-going students. For example, many online educational courses give student discounts, and many big companies like Apple, Nike, and Canva also give student discounts.

13.) Senior Citizen Discount: This type of discount is mostly given out of respect for senior citizens and as a way to provide them with services in a lower and more affordable way. For example, Indian Railways provides senior citizens with discounts on tickets and fares.

14.) Cashback Discount: This type of discount is given in the form of cashback or credits that are held in the person’s account in the company’s database or in the form of points on a physical card, and they can be used for future purchases. It is mostly given to increase customer loyalty to the brand.

15.) Loyalty Discount: This type of discount is given to customers who are repeat customers and are brand loyal. These customers frequently use the same company’s products and wander to other brands.

16.) Military Discount: This discount is given by many brands, especially to members of the military, as a token of appreciation for their services.

All the above are some types of discounts that are given by companies and brands in combination with their strategic objectives, which can lead to the future growth of the company.

To check the latest online discount coupons and deals, you can check out our website’s coupons and deals section. You can also check the available discount deals as per brands or as per categories. You can also follow us on our Facebook page.