Discounts and allowances
From the Simple English Wikipedia, the free encyclopedia that anyone can change
Discounts and allowances are reductions to a basic price of goods or services. They can mean a modification either of the manufacturer's list price, 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 actually paid. The purpose of discounts is to increase short-term sales, move out-of-date stock, reward valuable customers, encourage distribution.[1] Some discounts and allowances are forms of sales promotion.
