What Is a Discounting Factor?

The discount price strategy refers to the seller in order to reward or encourage the buyer's certain actions, such as bulk purchase, early payment, off-season purchase, etc., to reduce the basic price of their products to give buyers a certain price discount. The specific methods are: quantity discount, cash discount, function discount and seasonal discount. This is also a price strategy often used in online markets.

Discount price strategy

Right!

Amazon uses larger discounts than regular bookstores as a promotional method to attract customers, and most books sold by Amazon have discounts of 5% to 40%. Because you don't need your own storefront, there is almost no inventory. The lower operating costs enable Amazon to transfer the saved costs to customers through discounts, allowing customers to fully appreciate the advantages of online shopping, and become a regular customer of Amazon. High discounts will of course affect the short-term benefits of enterprises, but in the current development period of the online market, in order to cultivate and improve this market, this is a very effective investment behavior.

Discount cards are also a commonly used discount method in online marketing. A concession card, also called a discount card, is a voucher that can be consumed for less than the price of goods or services. Traditional promotion methods often use one-time coupons, but in online marketing, it is difficult to send coupons to certain customers multiple times. Therefore, most online stores use electronic discount cards. Consumers can use this card to get discounts on the purchase of goods or services. Discount cards typically have discount rates ranging from 5% to 60%. The applicable scope of the discount card can be specified by the online store. For example, it can be a specific product or service, or a series of products of the same brand, or even all products of the merchant; the validity period can be months, one year or more.

China's hotel reservation network in China is a promotion method using discount cards. Consumers can participate in this hotel reservation system through the Internet. After registration, all hotel accommodations in the system can enjoy a 40% to 40% discount.

In order to cultivate loyal customers, other online stores issue a point discount card to each customer who intends to spend. The discount card is based on how much the consumer spends online, and then gives gifts according to the number of points. This will not only attract consumers firmly to their own website, but also deepen the emotion between online stores and consumers.

The main factors affecting the discount strategy are the following

1. Quantity: Product quantity

2. Season: Also called seasonal spread. It is generally implemented in industries with obvious off-peak and peak-season goods or services.

3, discount rate: the discount rate will affect consumer interest in discount products

4. Brand influence: For example, a two-fold discount on LV will definitely stimulate purchase desire

5. Product use: the actual role of the product

6. Time: Holiday and non-holiday

form

(1) Cash discount

(Two) quantity discount

(3) Commercial discount

(IV) Seasonal discounts