Discount Pricing

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Description of Discount Pricing. Explanation.


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Definition Discount Pricing. Description.

Discount Pricing is an approach to pricing that sets artificially high prices and then offers large discounts to attract customers looking for a bargain. It is a modification to the basic price. Purposes of this approach are to increase short-term sales, move out-of-date stock, reward valuable customers, and encourage distribution channel members to perform a function.

Some regular types of discounts are:

  • Cash discounts.

  • Quantity discounts.

  • Trade discounts.

  • Seasonal discounts (Synchromarketing).

  • Forward dating (The date on the invoice is moved forward and the buyer doesn’t pay for the goods until well after they arrive).

  • Promotional allowances (Price reduction given to the buyer for performing some promotional activity).

  • Trade-ins (By offering more for a trade-in than it is actually worth).

The biggest advantage of this type of pricing is that it encourages additional sales without lowering the basic price or standard price or list price.

Although price discounting often results in additional sales in the short term, care must be taken not to harm the (long term) value of a brand as perceived by customers.

Discount Pricing Forum
  Definitions of Discount Pricing
Who has an alternate definition of discount pricing beyond the one given in the summary?...
  Disadvantages of Discount Pricing
What are the most important disadvantages of discount pricing for the seller? Thanks......
  Advantages of Discount Pricing
What are the most important advantages of discount pricing for the seller? Thanks......

Discount Pricing Special Interest Group

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Best Practices - Discount Pricing Premium

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Overview of Pricing and Pricing Strategies

This presentation contains an overview of various pricing strategies, including for example pricing based on competition; psychological pricing; cost-...
Usage (application): Pricing


Discount Pricing


Discount Pricing


Discount Pricing


Discount Pricing

Compare with: Marketing Mix  |  Promotional Pricing  |  Competitive Pricing  |  Cost-plus Pricing  |  Standard Cost Pricing  |  Marginal Cost Pricing  |  Penetration Pricing  |  Target Pricing  |  Price Skimming  |  Perceived Value Pricing  |  Psychological Pricing

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