Regardless of the structure of the agreement, the time an item has been delivered to a customer may request a charge (or discount) – the shorter the time between the sale of an item and the recovery of the load from the supplier, the worse the cash flow situation. Indirect discounts and shipping and shipping discounts often apply to the same transaction. This can be the first obstacle to many agreements, as many agreements are often not covered accurately, meaning they cannot be invoked properly. Whether you`re a distributor who pays discounts to your customers or a distributor who receives discounts from your creditors, accurate discount management should be a priority. Effective and effective discount management promotes better relationships with business partners and may be the difference between profits and losses for some companies. The other common driver of the use of discounts is the desire not to make the “real” price visible in the market. Since a discount is by definition a discount outside the bill, the use of a discount allows the supplier to charge an invoice at a price that is not the actual or net price paid by the Debitor. Price discounts, sometimes called protection charges, are supposed to allow for artificially highly priced billing. The big idea behind today`s article is to upset the concept of discounts: this type of information can help you raise prices more effectively. Increase the price of invoices for customers most sensitive to discount changes and reduce discounts for customers most sensitive to changes in bill prices. Volume discounts are the simplest discount and aim to limit customers` play and promise too much.
Instead of quoting a price largely due to the “intentional” or “promised” volume of the customer, the seller responds with differentiated prices when the price of the invoice is set, but the actual price varies in volume and the difference is granted per discount. A shipping and charging contract allows suppliers to sell their products at a single price, while traders can react to local market conditions and reduce the price they use to sell to customers without losing the risk of losing their profit margin. Once the sale is made, distributors can incriminate the supplier who has generally repaid the amount in the form of rebates. To increase complexity, “shipping and loading” is not the only type of price agreement that traders face. We have seen many types of discount agreements, ranging from simple ships and debits to more complex retrospective discounts. Preservation discounts are discounts paid to reward the continuation of the activity or customer loyalty. Preservation discounts can be discounts of any form, volume, mix, growth, but are usually at the end of the year or “Kliff” discounts that are paid when achieving a condition. Example: Buy 2010 each month from Company A and receive the following discount at the end of the year. Similarly, discounts can be used to smooth the volume by providing a financial incentive for customers who consume “klumpigem” to make smooth purchases. What we are seeing in vertical areas is that many companies have very complex discount structures that fuel a simple customer behavior: turnover.