Introduction

The world of commerce often gives us terms that may seem similar, but actually have different connotations. Two terms that are often confused are discount and rebate. In this article, the difference between both terms will be explained.

Discount

The discount is a reduction in price of a product or service that applies to a certain group of people or to an amount determined number of units sold. Discounts can be temporary, for example, during a sales season, or permanent, for example, for employees of a company or for members of a club. These discounts are reflected in the final retail price and can be very significant.

Discount types

• Prompt payment discount: applied when payment for the purchase is made within a specified period from the invoice date.
• Commercial discount: is the one granted when a purchase greater than a certain specific amount is made.
• Volume discount: applied when a minimum quantity of a product is purchased.

Reduction

On the other hand, a discount is a decrease in the sales price of a product or service that is executed temporarily. Unlike the discount, it is a reduction in the price already marked on the product. Sales are made to complete inventory, to offer attractive seasonal discounts, to sell products that have been discontinued and also to liquidate stocks of old models.

Differences between discount and rebate

The main difference between the discount and the rebate is that the discount is applied to the price after setting the price of the product, while the rebate acts directly on the already established price. That is, the discount is made before or after the purchase, while the discount is made at the time of purchase. Furthermore, discounts can be permanent or temporary and are aimed at a specific group of people, while sales are temporary and are usually aimed at the entire public.

Conclusion

In summary, the difference between a discount and a rebate lies in the moment in which the price reduction is made: discounts are made before or after the purchase, while rebates are applied directly to the price of the product. Additionally, discounts can be permanent or temporary, while sales are temporary. Knowing these differences, we can make more informed decisions when make purchases or when setting prices on our products or services.

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