Table of Contents
Defenition time discount
The time discount is a price reduction granted as part of the discount policy. It is based on the supplier's benefit in increasing sales. His goal in times of poor sales is that orders are already placed when the customer has not yet met the demand, e.g. B. when introducing a new product. However, it can also relieve storage or stabilize delivery. The time discount includes:
other types of discounts
The introductory discount, which is used to attract early customers to be part of the Product life cycle to shorten the introduction phase of the product. It aims to exert a certain pressure on stocks in the retail sector in the introductory phase of the product. The objective coincides with the advertising policy objective of the introductory advertising.
The pre-planning discount, which aims to compensate for seasonal fluctuations in sales and to stimulate sales in times of weak sales.
The seasonal discount that is granted for the use of services in a certain time of the year. He serves the better distribution the company. It is granted as a post-season discount if the required period has already ended, as a pre-season discount if it has not yet occurred.
The phase-out discount, which has the task of clearing out the warehouses with obsolete products as quickly as possible so that new products can be added to the warehouses.
The time discount should not only cover the customer costs discounted on the payment dates for the stocking, but should also cover customer costs that are offset by the company's services, e.g. B. Advertising, warranty services. The different types of time discounts can also be used in combination.