The functional discount is a price reduction granted to wholesalers and / or retailers as part of the discount policy. It is a means of fine-tuning pricing policy and is also known as a tiered discount.
Flat rate performance discount for all functions
The function discount is a flat-rate performance discount for all functions that are included in the distribution are perceived by goods from a trade level. These include:
- Collection of the products
- Acquisition of Warehousing
- Implementation of customer service
- Assumption of financing functions.
The retailer receives appropriate remuneration from the manufacturer for performing the functions he has assumed. In addition, the manufacturer ensures the existence of an efficient trade. There may be disagreements about the amount of this remuneration if the functions assumed cannot be measured quantitatively and a mutually agreed evaluation is difficult. Types of feature discounts are:
- The discount for commercial companies, e.g. B. Craftsman discount, wholesale discount, auto trade discount. These discounts are not limited in their amount.
- The cash discount, which z. B. is granted when a customer pays an invoice in cash. From the end of July 2001 the law on discounts ceased to apply.
- The discount, under which a percentage price reduction is understood, which is intended to induce customers to pay early, e.g. B. by the goods being payable within 10 days with 3 % discount, within 30 days without deduction.