In the Purchase discount of sku menu you can specify the following purchase discounts:
- contract discount
- estimated discount
- special discount
These different types of purchase discounts can be utilized in various scenarios within a business's purchasing processes. Here are examples of each:
- Contract Discount:
Long-term Supplier Agreement:
A company enters into a contract with a supplier to purchase a significant volume of raw materials or products over an extended period. As part of this agreement, the supplier offers a contract discount based on the committed volume or duration of the contract. For instance, a manufacturer may commit to buying a certain quantity of components from a supplier for a year at a discounted price per unit, ensuring a consistent supply and receiving a discounted rate due to the commitment.
- Estimated Discount:
Some businesses offer estimated discounts based on anticipated purchase volumes. For example, a distributor might offer a tiered discount structure where a customer receives a higher percentage discount as their order volume increases. The discount might be estimated initially based on projected future purchases and adjusted periodically based on actual volumes achieved.
- Special Discount:
A special discount can be applied for a limited time or under specific conditions. For instance, a supplier might offer a special discount during a seasonal sale or promotional period to encourage customers to make larger purchases. This could be a temporary reduction in price, or a percentage discount offered to select customers or for a specific product range.
🗒️ NOTE: ePrice is not calculating with purchased quantities or other purchase-dependent volume discount period validities. The supervision of these discounts should be integrated from another source!
These examples illustrate how different types of purchase discounts can be implemented in business scenarios.
Contract discounts are based on formal agreements, estimated discounts depend on projected volumes, and special discounts are more flexible and temporary, often used for promotional purposes or under specific conditions to drive sales or encourage specific purchasing behaviors.