Rebate (marketing)

A discount (from Italian: rabbattere = cut off, pull off ) is a discount from the list price of a good or service or the price that the contractor generally announces or calls (net selling price) or a special prize in any other way, because of the affiliation will be given to certain consumer groups, professions, organizations and societies. Discounts are used as incentives in the pricing policy and used both for offline shopping as well as increasingly in online trading ( online couponing ). The calculation is performed in pricing. Discounts are usually given as a percentage of the list price as a discount rate. A similar effect of the money off unfolds the offer, announcement or giving of free gifts. Additions are discounts in the form of goods. No discounts are general price reductions or refunds of goods.

Discount forms

The most important discount forms are:

• As a discount or cash discount is called the reduction of the amount invoiced for payment within the discount period.
• The amount of discount or quantity discount is encouraging people to buy large quantities of goods in a single shipment. When buying or ordering goods or commercial services a discount or a free additional quantity of the same product ( a bonus ) is granted. Most discount tables are set, the price gradually decreases with decrease of a larger number of pieces. If the estate of a certain value granted, it is called a merchandise value discount. They were also permitted under the validity of the discount law if they were to look at the type and scope as well as the number of units or amount sold as commercially available. A determination of a fixed Vomhundertsatzes did not exist here.
• The annual discount is applied to the expenditure incurred in a year in sales. It can be uniquely defined or graded according to sales.
• The loyalty discount is to encourage customer loyalty and fend off competitors.
• The item discount is usually granted only on an invoice item, but may also be granted to several items in the bill.
• The sales bonus is a customer credit, which will be paid if an agreed total sales were achieved at the end of the year.
• Sales terms bonus rewards the purchase and payment behavior of customers (see Geml / Lauer, pp. 336-337 ). The bonus is the higher, the better the payment behavior of the customer.
• The function discount is given if the customer agrees to undertake particular tasks ( for example advertising, grading, filling ).
• The reseller discount is granted by the wholesale and retail trade margin on goods whose retail price is set by the manufacturer. He is the dealer secure a reasonable profit.
• When goods discount, the buyer receives an indirect discount in the form of unpaid goods ( encore ).
• The season discount is for premature purchase of goods that are subject to strong seasonal variations, granted.

There are also many forms of special discounts, such as:

• Erstbestellerrabatt to attract new customers
• Personal discount for company employees (see discount allowance )
• Anniversary discount on business anniversaries
• Special discount for trading in relation to targeted promotions (eg mailings, couponing ). The trade thus assumes a function advertiser.
• Stock clearance discount, which is intended to create the end of the season storage space for new products ( eg Winter Sale ).
• Mail - in rebate (also called cash back ) The buyer receives a discount, for example, paid by check after it has sent a proof of purchase and / or part of the packaging to the manufacturer.
• Web Discount: discount, which is granted to the buyer when he ordered the product via the Internet and thus less cost (eg personnel, warehouse ) for the company incurred.
• Discount points: About previous sales pro rata accumulated bonus points ( usually 1-5 ​​percent of the purchase price ) will be implemented in discounts for future purchases.
• No-claims bonus on car insurance
• Early booking discount as discount on the catalog prices of tour operators with early booking process.

Legal situation in Germany

1933 discount law was introduced in Germany, which prohibited the granting of discounts to end users for everyday goods partially. Maximum 3 percent discount were allowed. The addition of Regulation 1932, which regulated rebates, was abolished on the same day.

On 24 July 2001, the discount law was abolished. Deregulation was, inter alia, been discussed as early as 1994.

Since the liberalization of customers and traders to negotiate discounts in almost all areas. An exception is the book price. Critics of liberalization have voiced concern that smaller providers will be forced off the market by the onset of price wars and so jobs may be destroyed.

Several companies may merge to a so called discount cartel by registration in accordance with § 3 of the ARC. In order discounts when delivery of goods can be achieved.

Advertising with exaggerated discounts may be unlawful with the jurisprudence of the Federal Court under § 5 § 4 UWG.

Criticism

A discount often gives the customer the impression that he could purchase a quality product at a reasonable price for it. However, this is by no means always the case as the actual value of goods often remains hidden from the buyers. Instead, it is based on the so-called Reduced price from which the discount is deducted. Rogue traders take advantage of this by start intentionally inflated prices (so-called astronomical prices ) to grant to this then seemingly generous discounts. Comparing the resultant price to the actual value of the product, then provides some apparent bargains out to be a costly event.

Discounts have always been granted in the human trafficking story for several reasons. Although in the literature is less, it is probably the " bargain hunters " just as long. An indication could be the English writer John Ruskin awarded Quote:

"There is hardly anything in the world that some man can not make a little worse and sell a little cheaper, and the people who consider price alone, the lawful prey machinations. - It is unwise to pay too much, but it is also unwise to pay too little. When you pay too much, you lose a little money. That's all. When you pay too little, you sometimes lose everything because the thing you bought is incapable of doing the intended job. The law of business balance prohibits paying to get great value for money. - Take to the lowest bidder it is well to add for the risk you run, something. And if you do, then you will have enough money to pay for something better. "