Difference between Price Off and Price Discount

Key Difference: Discounts and offers are essentially just reductions to a basic price of goods or services. It makes people aware of the product, so that they may buy it and help increase the sales and/or popularity of the product. The price off and price discount refer to the same phenomenon, where the seller aims to sell the product at a price less than the regular price.

When shopping, one always comes across as terms as “10% off” or a “10% Discount”. This is irrelevant to shopping at store or online. These days there are discounts everywhere one looks: in store, online shopping sites, internet advertisements, newspaper advertisements, tele-shopping, etc. This is mainly because discounts are a very popular way of gaining promotion for a product.

Discount is a type of Sales Promotion. Sales Promotion helps create hype for the product. It makes people aware of the product, so that they may buy it and help increase the sales and/or popularity of the product. In fact, there are actually three basic objectives of promotion:

  • To present information to consumers as well as others.
  • To increase demand.
  • To differentiate a product.

Discounts allow the seller to do that. Discounts and offers are essentially just reductions to a basic price of goods or services. Sellers often offer discounts or sales to entice the customers, offering a 10% discount or 20% off of the product. However, there are no actual differences between the two terms. The price off and price discount refer to the same phenomenon, where the seller aims to sell the product at a price less than the regular price.

There are many purposes for offering a discount, including increasing short-term sales, to move out-of-date stock, to reward valuable customers, to encourage distribution channel members to perform a function, or to otherwise reward behaviors that benefit the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.

Comparison between Price Off and Price Discount:

 

Discount

Definition

Discounts and allowances are reductions to a basic price of goods or services.

Part of

Sales Promotion.

Directed at

Anyone 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).

Purposes

To increase short-term sales, 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.

End Function

To enhance short term company sales

Types

  • Discounts and allowances dealing with payment
  • Discounts and allowances dealing with trade
  • Discounts and allowances dealing with quantity
  • Discounts and allowances dealing with customer characteristics
  • Discount card
  • Coupons
  • Rebates

Examples

Discounts include summer discount, Coupons, Rebates, Senior discount, Student Discount, End of stock discount, clearance sale, buy one get one free discount, etc.

Image Courtesy: springvalley.org, garcya.us

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