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Difference between discount and discount

Difference between discount and discount

The maximization of sales is the main corporate objective, for which various strategies are followed by the company. One of these strategies is providing buyers with a discount or discount to induce them to buy more quantities of goods. The Discount the most common strategy used by entities to improve sales, where a deduction is made in the price of the product.

On the contrary, the refund a particular type of discount or partial refund of the price of the product by the seller to the buyer, granted to those customers whose purchases reach the specified volume or quantity.

Whenever people get a price drop when shopping, it's a discount, but it's actually a discount. Hence, all customers and sellers need to know the differences between discount and discount.

Comparative chart

Basis for comparison Discount
Sense A deduction of the purchase price given to the buyer, by the seller for various reasons, known as a discount. The refund the amount of the purchase price reimbursed by the seller to the buyer, when the purchased quantity reaches the specified limit.
Type of strategy Marketing strategy Sales promotion strategy
When is it delivered? When the advance is paid or the payment is made on time. When making full payment.
Available to All customers Specific customers
Given up Every item purchased by the customer. Only if the value of the goods or quantity purchased reaches the specified limit.

Discount definition

The concession granted by the seller to the buyer on the nominal value of the invoice known as Discount. It is indicated on the gross amount of the product and the buyer must pay the net amount equal to the gross amount minus the discount.

The discount granted to all customers, to induce them to make advance payments or to make payments within a short period. Sometimes, it is provided to increase sales volume or to reward old customers. There are two types of discount:

  • Commercial discounts : the discount allowed on the list price known as the Trade Exchange. It is given to all customers, whether they make credit purchases or cash purchases. allowed customers to encourage sales in large quantities. The discount rate varies according to the order placed by customers.
  • Cash discount : the discount that is allowed to the customer only if he makes a cash payment for the items purchased known as a cash discount. granted only to customers making immediate payment. The discount indicated in the books.

Discount definition

Reimbursement is a type of indemnity provided to customers on goods purchased as a deduction in the catalog price and to the evaluator for the taxes paid or to the lessee for the rent paid for the amount paid plus the amount to be paid.

The refund allowed to customers, when their purchase in quantity or in value, reaches a specified limit. The amount returned to the buyer by the seller, at the time of full payment for purchases, known as a refund. a tool used by sellers to promote sales in large quantities. The refund amount provided to the buyer pre-decided by the seller.

The discount also allowed to evaluate whether they pay taxes more than the amount to be paid. the money reimbursed by the tax authorities to the evaluator. Likewise, in the case of rent and utility bills, refunds are allowed.

Key differences between discount and discount

The following are the main differences between discount and discount:

  1. The discount is a reduction in the nominal value of the goods granted to customers to make the payment on time or to buy products in large lots. The discount, on the other hand, a special type of discount granted to customers when the purchases made by the buyer exceed the defined limit, in the specified period.
  2. The discount is a marketing strategy, but the discount is a sales strategy.
  3. The discount allowed when the payment made on time, while the refund allowed when the full payment is made to the seller for purchases.
  4. The discount available for all customers. Conversely, the discount available for those customers who meet specific criteria.
  5. The discount given for each item purchased by the customer; however, the refund given as a deduction in the list price provided the required conditions are met.


Therefore, from the above discussion, it is quite clear that discounting and refunding are two very different things. The discount is a very common tool for increasing sales. It is often given to buyers, to keep them for a long time. The discount is occasionally granted, only to those customers who meet specific criteria. Hence, the unopened refund for each person, but the discount available for all customers.