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What is the price discount strategy? 0 replies,1173 views

What is the discount pricing discount pricing strategy is the basic price of certain concessions made, directly or indirectly reduce the prices to win customers, increase sales. Among them, the direct form of discount quantity discounts, cash discounts, functional discounts, seasonal discounts, discounts in the form of indirect rebates and allowances. Pricing in the form of 1. Quantity discount that number by the number of purchase were given different discounts, buy more servers, the greater the discount. The aim is to encourage a large number of purchase, or concentrated to the business purchase. Quantity discounts, including volume discounts and one-time cumulative quantity discount forms. Cumulative quantity discount provision customers in a certain time, the purchase of goods or the amount if a certain number, then give a discount according to their total, and its purpose is to encourage regular customers to buy the business and become a reliable long-term customers. Quantity discount off a purchase of a product provides a certain amount or buy certain amount of variety of products, the discount given, and its purpose is to encourage customers to buy large quantities to promote products, sell more, faster sales. The promotional role of quantity discounts is very obvious, the profit per unit of product due to reduced business losses resulting from the increase in sales can be compensated. In addition, the acceleration of sales, cash flow to enable enterprises to increase in the number, distribution costs down, reduce product cost, resulting in the total corporate profits increase. Difficulties in the use of quantity discount strategy is how to determine the appropriate standards and discount the discount. If the number of discount the standard too high, too low, only a few customers to get preferential treatment, most customers will be disappointed; purchase amount is too low, the ratio is irrational, but also to encourage customers to buy not achieve and promote the role of business sales. Therefore, enterprises should be combined with product characteristics, marketing objectives, cost levels, corporate profits funds, the scale of demand, purchase frequency, competitors as well as traditional means of business practices and other factors to develop scientific criteria and the proportion of the discount. 2. Cash discount cash discount is in the time of payment or cash in advance payments on a given price discount, which aims to encourage customers to pay as soon as possible, accelerate cash flow, reduce marketing costs, reduce financial risk . A cash discount generally consider three factors: the price discount; offer discounts of time constraints; pay the full payment deadline. In Western countries, the typical payment terms discount is expressed as 3 / 20, Net 60. The implication is that within 20 days after the payment in the transaction, the buyer can get 3% discount, more than 20 days, payment within 60 days, no discount, more than 60 days to pay additional interest. Cash discount is the way of selling goods on credit or hire to, therefore, some companies use the additional risk costs, management costs way to avoid possible risks. Meanwhile, in order to expand sales, installment payment under the total amount the buyer paid cash transactions should not be higher than the price too much, otherwise it would not achieve the effect of discounts. Cash discount equivalent to lower prices, so companies use this means to consider whether there is sufficient product demand elasticity, to ensure that the enterprise by increasing demand for adequate profit. In addition, many of our businesses and consumers are not familiar with the cash discount, the use of such means must be integrated with corporate propaganda tool, so that buyers will be more aware of their benefits. 3. Feature products, discount brokers in the part of the distribution process in which the different functions they undertake, responsibilities and risks are also different, giving different discounts hereunder called functional discounts. Productive users of price discounts also are a function of discount. Function Zhekou the proportion of primary consideration middleman position in the distribution channel, sales of production enterprises of the importance of the purchasing volume, completed the marketing function, risk, service levels, performance of the commercial liability, and products in the sub- sales in the experience level and the ultimate price in the market and so on. The result is the formation of functional discount and wholesale and retail buying and selling spread difference. Encourage brokers for large quantities, expand sales, for the customer, and with manufacturers to establish long-term, stable and good relations of cooperation is the implementation of a major goal of functional discounts. Another purpose of the discount function is the product of middlemen operating costs and expenses to compensate, and allow brokers have a certain profit. 4. Seasonal discount is continuous production of some commodities, and its consumption have obvious seasonal. In order to regulate supply and demand, producers of these commodities have seasonal discounts by way of purchase of goods on customers in the off-season to give certain concessions, so that their production and sales to remain relatively stable throughout the year. For example, beer manufacturers in the winter, a significant purchase of commercial units to let, down jacket manufacturers, compared with the summer to buy their products to offer discounts to customers. Determine the seasonal price discount should be considered costs, storage costs, interest and capital base price and other factors. Seasonal discounts help reduce inventory, speed up the circulation of commodities, the rapid recovery of capital, promoting enterprise balanced production, full production and sales potential, to avoid seasonal changes in demand brought about by market risk. 5. Rebates and allowances, rebates are a form of indirect discounts, it refers to the purchase price in the catalog will be paid by the seller to pay after all, a certain percentage of sales were then part of the money returned to the purchaser. Allowance for the special purpose company, for special customer given a specific form of price subsidies or other subsidies. For example, when the broker for the enterprise products, including local advertising published, setting the sample display window including a variety of other promotional activities, production companies give brokers a certain amount of funding or subsidies. Again, for the mature stage of the consumer, to carry out trade-in business, garage converted into a certain price, the price of a new product is deducted, the customer only pays the balance, to stimulate consumer demand, promote upgrading of products expand the sales of a new generation of products. This is also a form of subsidy. From E6% 8A% 98% E6% 89% A3% E5% AE% 9A% E4% BB% B7% E7% AD% 96% E7% 95% A5
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