Discount denotes a deduction allowed to a person for payment before the due date or a deduction from the invoice price allowed to a buyer for purchasing goods in bulk. It is a deduction from the usual cost of something. It is a reduction made from the gross amount or value of something. To discount is defined as to mark down the price of something, or to disregard a suggestion or idea because it is unlikely to be true. An example of a discount is when you cut prices in your store from $10 to $5.

Discount is a deduction made for interest in advancing money upon or purchasing a bill or note not due. The noun discount refers to an amount or percentage deducted from the normal selling price of something. As a small business owner, you need to find new ways to attract new customers, keep current ones, and compete with other businesses. One way you can do these things is by using pricing strategies, which help you determine how to price your products or services. Discount pricing is one type of pricing strategy where you mark down the prices of your merchandise. When we go shopping and when we see the word discount we get excited because a discount means shoppers would be saving money on items he or she intends to buy. The goal of this strategy is to increase customer traffic, clear old inventory from your business, and increase sales.


  • Quick Way to Drive Sales: Customers like a good deal for their money and it is a quick way to get your sales up.
  • Attract New Customers: Especially for customers who are in the process of deciding to buy your product.
  • Clear Out Old Stock: Have sluggish products from last season?
  • Building a Relationship with Loyal Customers: People like being recognized for their efforts and that is all the more true with loyal customers.


  • Inviting the Wrong Attention: Discounts can attract customers who are simply driven by a good bargain rather than appreciate what your business has to offer.
  • Shifting Focus on Price: What’s worse is this may not only apply to new customers but also existing ones.
  • Lowered Perceived Value: With enormous discounts, we’re suspicious that quality may have suffered or that it wasn’t worth the price, to begin with.
  • Cut in Profit: Just as the headline suggests, the most obvious disadvantage is the cut in what you could have been making.