Discounts and allowances

reductions in the basic prices of goods or services

Discounts and allowances are when the price of goods or services is made lower. Discounts and allowances can be a change of the price that the manufacturer sells the product for, 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). The market price (also called effective price) is the amount that the customer pays. The purpose of discounts is to increase short-term sales, move out-of-date stock, reward valuable customers, encourage distribution.[1] Some discounts and allowances are forms of sales promotion.

Related pagesEdit


  1. "Professor Cram. "Discounts and Invoices: Discounts and Allowances Overview" 14 May 2008 <>". Archived from the original on 26 May 2008. Retrieved 30 May 2008. External link in |title= (help)