Discounts and allowances are reductions to a basic price of goods or services.
They can occur anywhere in the distribution channel, modifying either the manufacturer's list price (determined by the manufacturer and often printed on the package), the retail price (set by the retailer and often attached to the product with a sticker), or the list price (which is quoted to a potential buyer, usually in written form).
There are many purposes for discounting, including; to inales, to move out-of-date stock, to reward valuable customers, to encourage distribution channel members to perform a function, or to otherwise reward behaviors that benefit the discount issuer. Some discounts and allowances are forms of sales promotion.
Famous quotes containing the word allowances:
“Authors have established it as a kind of rule, that a man ought to be dull sometimes; as the most severe reader makes allowances for many rests and nodding-places in a voluminous writer.”
—Joseph Addison (1672–1719)