Different methods of
discounts in the selling process:
- Rebate
- Discount
- Refund
- Product Combination
- Quantity Gift
- Instant Draw and Assigned Gift
- Lucky Draw
- Usable Benefits
- Full Finance @ 0%
- Samples or Sampling
- Contests.
Rebate: Under
it in order to clear the excess stock, products are offered at some
reduced price. For example, giving a rebate by a car manufacturer to
the tune of 12,000/- for a limited period of time.
Discount:
Under this method, the customers are offered products on less than
the listed price. For example, giving a discount of 30% on the sale
of Liberty Shoes. Similarly giving a discount of 50% + 40% by the
KOUTONS.
Refunds: Under
this method, some part of the price of an article is refunded to the
customer on showing proof of purchase. For example, refunding an
amount of 5/- on showing the empty packet of the product priced
100/-.
Product Combination: Under
this method, along with the main product some other product is
offered to the customer as a gift.
The following are some
of the examples:
Quantity Gift: Under this
method, some extra quantity of the main product is passed on as a
gift to the customers. For example, 25% extra toothpaste in a packet
of 200 gm tooth paste. Similarly, a free gift of one RICH LOOK shirt
on the purchase of two shirts.
Instant Draw and
Assigned Gift: Under this method, a customer
is asked to scratch a card on the purchase of a product and the name
of the product is inscribed thereupon which is immediately offered to
the customer as a gift. For example, on buying a car when the card is
scratched such gifts are offered – TV, Refrigerator, Computer,
Mixer, Dinner Set, Wristwatch, T-shirt, Iron Press, etc.
Lucky Draw:
Under this method, the customers of a particular product are offered
gifts on a fixed date and the winners are decided by the draw of
lots. While purchasing the product, the customers are given a coupon
with a specific number printed on it.
On the basis of this
number alone the buyer claims to have won the gift. For example, ‘Buy
a bathing soap and get a gold coin’ offer can be used under this
method.
Usable Benefits: Under
this method, coupons are distributed among the consumers on behalf of
the producer. Coupon is a kind of certificate telling that the
product mentioned therein can be obtained at special discount.
It means that if a
customer has a coupon of some product he will get the discount
mentioned therein whenever he buys it. Possession of a coupon
motivates the consumer to buy the product, even when he has no need
of it.
Such coupons are published
in newspapers and magazines. Some companies distribute coupons among
its shareholders. Sellers collect the coupons from the customers and
get the payment from the company that issues the same.
Full Finance @ 0%: Under this method, the product is sold and money received in instalment at 0% rate of interest. The seller determines the number of instalments in which the price of the product will be recovered from the customer. No interest is charged on these instalments.
Samples or Sampling: Under
this method, the producer distributes free samples of his product
among the consumers. Sales representatives distribute these samples
from door-to-door.
This method is used mostly
in case of products of daily-use, e.g., Washing Powder, Tea,
Toothpaste, etc. Thus, the consumers willy-nilly make use of free
sample. If it satisfies them, they buy it and in this way sales are
increased.
Contests:
Some producers organise contests with a view to popularising their
products. Consumers taking part in the contest are asked to answer
some very simple questions on a form and forward the same to the
company. The blank form is made available to that consumer who buys
the product first.
Result is declared on the
basis of all the forms received by a particular date. Attractive
prizes are given to the winners of the contest. Such contests can be
organised in different ways.
