Discounts are: understanding, type and how to calculate discounts
Basically, discounts are a reduction in prices listed offered by the seller to the buyer while shopping. One of these marketing strategies is very often found in Indonesia because discounts have certain attractions to attract public interest in buying products.
According to experts, the discount is
Tjiptono explained that discounts were discounted prices provided by the seller to the buyer as a form of appreciation for carrying out certain activities from pleasant buyers for the seller.
- Suhardi Sigit.
Suhardi Sigit argues that discounts are a predetermined price reduction because the buyer is able to fulfill certain certain requirements that have previously been established.
Kotler explains that discounts are basic price adjustments in providing a reward for customers or a certain reaction such as making a payment of the initial bill, doing a certain amount of purchase, etc.
1. percentage discount
The first type of discount that attracts the attention of Oran is a percentage discount. The most used percentage to increase sales is a discount from 25% to 50%. Generally, companies that provide discounts are doing warehousing or the products are not so hot in the market.
For this reason, this discount is done so that it can increase product sales quickly. Reporting from the Shopify page, you can use this type of discount for more than one product, such as buying products A and get a product B at a discount of 50%.
2. Price reduction discounts
The next type of discount is a price reduction discount, in this case the company will use a minimum price limit then will then immediately reduce. Like, buy goods worth 500 thousand and get a 50 thousand discount.
In this way, the customer will feel you have to reach a certain minimum number to get a discount, even though the discount is not too large. Still quoted from the Shopify page, if the price of goods is high enough, it is recommended to use this type of price or discount.
Or you can also use the way “buy a product worth 500 thousand and get a shopping voucher of up to 50 thousand. So, the discount is not only about the discount, because it can be a voucher or credit that can be utilized for the next.
This discount strategy is considered very effective because indirectly will increase consumer loyalty and ensure it to repurchase.
3 Free shipping
Further discounts that are very loved by online shopping connoisseurs are free shipping. We know that often there are some items we want to be in accordance with taste, but discourage the intention of buying because of the high cost of shipping.
This is not only limited to goods, but it can also be applied in the purchase of food or drink. Generally, this free shipping costs will be applied in a certain period or when the buyer uses a particular voucher code.
Furthermore, shipping that utilizes this promo usually has a duration that is longer than paying at the usual price.
4. Free prize.
Reporting from the AcountingTools page, this type of discount is usually carried out in the process of washing the warehouse or profit obtained has been sufficient.
5. Discounts for special products
This type of discount will usually be determined by the seller and take place in a certain period of time. In addition, this type of discount can also be applied to selected people.
How to calculate a discount
1. Calculate Discounts A% + B%
This type of piece like this is very easy to find in department stores or clothing stores in shopping centers. Discounts like this might look big, but actually not. If we take an example there is a shirt that is priced at $ 50 and is given a discount of 30% + 20%, then the price of the item must be reduced by 30% first, then reduced 20%.
So, 30% x $ 50 is $ 15. Then 20% x $ 15 is $ 3. So, the total total discounts are $ 15 + $ 3 = $ 18.
2. Calculate a Discount a% off
If you find an item that is priced at $ 50 and at a 20% off discount, then you can directly calculate it by 20 x $ 50 = $ 1000: 100 = $ 10. So the price you have to pay is $ 40.
3. Calculate B% discounts for further purchases
For this type of calculation, then let’s take an example of a ticket purchase watching a cinema with a 50% discount on the second purchase. For the calculation, you will be subject to normal prices first, for example $6, Well on the second ticket purchase, later you will get a price of half.
4. Calculating Buy A Get A / B Free
This type of discount will make anyone tempted. Let’s take an example of a Buy 1 Get 1 promo, so with the price for example $ 50, then you can get 1 beautiful clothes, Dean 1 bonus the same clothes or other types, depending on the terms and conditions applied.
But for the case of the Buy 2 Get 3 promo, then you have to summer the normal price on the 2 clothes you will buy as the price you have to pay. The calculation is 2 x $ 50 = $ 100. If it’s so, then you will get additional bonuses of clothes or other types of products, depending on the terms and conditions applied.
Other strategies currently applied by companies to get many consumers are Buy 1 Get 2, the way the calculation is calculated from the highest price.
If you find this promo, then you can choose 3 items that are in accordance with the terms and conditions that have been set, but when paying at the cashier, you only have to pay 1 item at the highest price.
So, if 1 shirt with brand A is priced at $ 11, 1 shirt with the same is priced at $ 15, and 1 pants with the same brand is also priced at $ 25. Then you just have to pay at the most expensive price, which is $ 25.
5. Calculating Cashback Promos
Other promos that are no less interesting with discounts are cashback. Promo pieces that can be obtained in the form of refunds are very varied. Can be in the form of vouchers, points, virtual refunds, etc.
For example, there is a GO-PAY eats promo with a cashback value of 20% and a maximum of $ 1 for the first purchase without the minimum transaction. So it means, if you eat at a store that cooperates with Gopay worth $ 10, then you will not get $ 2 cashback because the cashback value is 20%. However, the cashback that you will still get is a fixed of $ 1.
6. Don’t get me wrong with discount up to a%
At present, in certain store or stores storefronts, we might easily see discounts that say up to what percentage. This indeed sometimes makes many people tempted. As for an example there is a discount up to 90%, there will be many people who are tempted and immediately discretion because they think the discount is 90%.
However, when entering they will be disappointed because the discount installed is not all 90%. Why? Because the word up to this means up to, so the discount is up to 90%. Although indeed the goods are priced at 90% discount, but still there is a variation of discounts of certain items, starting from 10%, 20%, 50%, up to 80%. For that, think carefully before buying it.
7. Calculate special price promos food packages
Most of us must have tried eating packages, why? Because the package menu is certainly more economical. example:
- Package menu = 1 chicken thigh, 1 serving of rice, 1 ice tea for $3.
- Ala carte alias separate = 1 chicken thigh $1.7 + 1 Rice $0.6 + 1 Soft Drink $0.9 = $3.2.
- Promo Family Package 5 Chicken + 3 rice + 3 iced tea for $9.8.
With these prices, of course you can be more economical than buying it apart, but try counting if you go eat with 5 friends or other family members.
- Family package $ 9.8 + rice 2 $ 0.6 = $ 10.4
- Individual package 5 x $ 2.5 = $ 12.5
- You skimp = $ 12.5 – 10.4 = $ 2.1.
Discounts or promos are always scattered many of our steps while shopping. If it is not calculated carefully, then you can darken eyes and will be a shopping. Before making a purchase, it’s a good idea to count the discount you want to get so as not to be fooled.
For the company, promos or discounts are indeed a good strategy to get more profits. However, it still must be adjusted to the company’s good financial cash flow, so that the company’s financial condition can be maintained.
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