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Clawback
1.1.1.1 Examples
1.2.1 Bargaining
1.7 Coupons
1.8 Rebates
2 See also
3 References
4 Further reading
2/10 net 30 - this means the buyer must pay within 30 days of the invoice date, but will
receive a 2% discount if they pay within 10 days of the invoice date.
3/7 EOM - this means the buyer will receive a cash discount of 3% if the bill is paid within 7
days after the end of the month indicated on the invoice date. If an invoice is received on or
before the 25th day of the month, payment is due on the 7th day of the next calendar month. If a
proper invoice is received after the 25th day of the month, payment is due on the 7th day of the
second calendar month.
3/7 EOM net 30 - this means the buyer must pay within 30 days of the invoice date, but will
receive a 3% discount if they pay within 7 days after the end of the month indicated on the
invoice date. If an invoice is received on or before the 25th day of the month, payment is due on
the 7th day of the next calendar month. If a proper invoice is received after the 25th day of the
month, payment is due on the 7th day of the second calendar month.
2/15 net 40 ROG - this means the buyer must pay within 40 days of receipt of goods, but will
receive a 2% discount if paid in 15 days of the invoice date. (ROG is short for "Receipt of
goods.")
Sliding scale[edit]
Main article: Sliding scale fees
A discount offered based on one's ability to pay. More common with non-profit organizations than
with for-profit retail.
Forward dating [edit]
This is where the purchaser doesnt pay for the goods until well after they arrive. The date on the
invoice is moved forward - example: purchase goods in November for sale during the December
holiday season, but the payment date on the invoice is January 27.
Seasonal discount [edit]
These are price reductions given when an order is placed in a slack period (example: purchasing
skis in April in the northern hemisphere, or in September in the southern hemisphere). On a shorter
time scale, a happy hour may fall in this category. Generally, this discount is referred to as "X-Dating"
or "Ex-Dating". An example of X-Dating would be:
3/7 net 30 extra 10 - this means the buyer must pay within 30 days of the invoice date, but
will receive a 3% discount if they pay within 7 days after the end of the month indicated on the
invoice date plus an extra 10 days.
Trade-in credit[edit]
Trade-in credit, also called trade-up credit, is a discount or credit granted for the return of something.
The returned item may have little monetary value, as an old version of newer item being bought, or
may be worth reselling as second-hand. The idea from a seller's viewpoint is to offer some discount
but have the buyer showing some "counter action" to earn this special discount. Sellers like this as
the discount granted is not just "given for free" and makes future price/value negotiations easier.
Buyers have the advantage of getting some value for something no longer used. Examples can be
found in many industries.[2]
if one wants less than the minimum amount one has to be pay for the minimum amount
anyway
if one wants an amount between two of the fixed amounts on offer, one has to pay for the
higher amount
These also apply in the case of a service with "quantity" referring to time. For example, an entrance
ticket for a zoo is usually for a day; if one stays shorter, the price is the same. It is a kind of pass for
unlimited use of a service during a day, where one can distinguish whether or not, when leaving and
returning, one has to pay again. Similarly a pass can be for another period. In the case of long
periods, it is obvious that one can leave and return without paying again.
If one has to buy more than one wants, we can distinguish between the surplus just not being used,
or the surplus being a nuisance, e.g. because of having to carry a large container.
Discount card[edit]
Main article: Discount card
Sometimes a document, typically a plastic card similar to a payment card, is issued as proof of
eligibility for discounts. In other cases, existing documents proving status (as student, disabled,
resident, etc.) are accepted. Documentation may not be required, for example, for people who are
obviously young or old enough to qualify for age-related discounts. In some cases, the card may be
issued to anyone who asks.
Coupons[edit]
Main article: Coupon
A discount, either of a certain specified amount or a percentage to the holder of a voucher, usually
with certain terms. Commonly, the terms involve the terms of other discounts on this page, such as
being valid only if a certain quantity is bought or only if the customer is older than a specified age.
Coupons are often printed in newspapers, brochures, and magazines, or can be downloaded and
printed from Worldwide Web pages that can be accessed via the Internet.
Rebates[edit]
Main article: Rebate (marketing)
A refund of part of sometimes the full price of the product following purchase, though some rebates
are offered at the time of purchase. A particular case is the promise of a refund in full if applied for in
a restricted date range some years in the future; the hope is that the promise will lure customers and
increase sales, but that the majority will fail to meet the conditions for a valid claim.
Promotional allowances - These are price reductions given to the buyer for performing
some promotional activity. These include an allowance for creating and maintaining an in-store
display or a co-op advertising allowance.
Brokerage allowance - From the point of view of the manufacturer, any brokerage fee paid
is similar to a promotional allowance. It is usually based on a percentage of the sales generated
by the broker.
See also[edit]
Net 30
Ticket systems
References[edit]
1.
2.
Jump up^ "Example for Trade-In offerings in the Test- and Measurement Industry". All
Business. Retrieved 2011-05-23.
3.
Jump up^ Example of young person's discount: UK 16-25 railcard offering 1/3 discount on rail
travel, and other discounts, for an annual fee
4.
5.
6.
7.
8.
Further reading[edit]
Shell, Ellen Ruppel, Cheap: The High Cost of Discount Culture, New York : Penguin Press,
2009. ISBN 978-1-59420-215-5
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