Definition: Discount - Explained

When a price of a product or service is reduced from an established amount it is priced at discount. Retailers make offers of discount mostly to move the items. They may make discount offers connected with cash sales (credit card costs can easily reach 3% to 5% per transaction just to execute, along with any associated transaction risks).

Sellers might also offer discounts for ongoing accounts, as in the terms "the supplier offered 1% 10 net 30" meaning that the customer gets 1% off if paid wihin 10 days which is due in 30 days, as a tool for increasing timely payments.

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