Discounts are one of the tools to stimulate a client to purchase a product. Most often, they are made by large brands that seek to conquer the widest possible range of consumers, "accustoming" them to wearing their own clothes, consuming cosmetics, and so on. The calculation of discounts is part of the price differentiation strategy.
Instructions
Step 1
This strategy involves changing the price level for different categories of consumers, different regions, as well as adjusting seasonal fluctuations throughout the year. Discount calculation should be carried out from the base. The price obtained by the pricing method is taken for it. Then the amount of allowances or discounts is calculated.
Step 2
For customers, the discount can be differentiated by the frequency of their use of the company's services or its products, by the volume of purchases, as well as by the methods of payment. It makes sense to create a system of discounts only if there is a real struggle for the buyer.
Step 3
To calculate the discount, you need to calculate how effective this event will be for the company. The efficiency calculation methods also depend on the type of discounts: discount for the volume of a one-time purchase or accumulated volume, seasonal discount or discount for the speed of payment. A discount should not be an inevitable evil for an enterprise; it should lead to an increase in profits, or at least preserve it.
Step 4
The volume discount is a progressive discount. To calculate it, they are guided by the following principle: the profit from a large volume of sales at a discount should not be less than with small volumes at the old price.
Step 5
To develop a scale of discounts, you need to calculate the initial sales volume from which you can make a discount, calculate the amount of margin for all levels of the scale that the company plans to receive.
Step 6
The rate of payment discount is applied when the contract is drawn up. The sooner the client pays for the products, the more he can get a discount. Here, when calculating the discount, you should proceed from the benefits that you will receive by receiving money earlier. This can be bank interest, inflation, asset freeze, and so on. That is, the contract stipulates conditions that will benefit the seller and for this the buyer will also benefit.
Step 7
Seasonal discounts redistribute demand. To calculate them, consider the costs of switching when switching to new products, forced downtime outside the season, the cost of hiring additional personnel during the peak season. Discounts for the disposal of goods are calculated based on the possible costs of storing products, as well as on the likelihood of product spoilage, and so on.
