A discount is understood to be a reduction in price for a formally standardized offer or list price.
Known forms of discount are quantity, loyalty or seasonal discounts. A distinction can be made between scale and standard discounts. The scale discount depends on the reference value (e.g. quantity or turnover discount), whereas the standard discount is independent of the latter and constant (e.g. seasonal discount). Today, retailers and end customers can negotiate discounts for almost all product categories. Books protected by fixed prices are an exception.
The strategic handling of discounts is a key challenge for management, as discounts have a direct impact on price perception and purchasing behavior. In order to ensure the greatest possible transparency towards the customer and to optimize discounting from an internal company perspective, a performance-oriented condition system is required.