Understanding Discounts: Types and Benefits

Discounts are reductions in the price of a product or service that are offered by sellers to encourage customers to buy them. Discounts can be given as a percentage off the original price, or as a fixed amount off the purchase price. They can be offered for a limited time only, or they can be permanent.

For example, if a store is selling a shirt for $50, but offers a 20% discount on it, then the customer will pay only $40 for the shirt. This means that the customer has saved $10 on the original price of the shirt.

Discounts can be given in various forms such as:

* Percentage off: A certain percentage of the original price is deducted from the purchase price.
* Fixed amount off: A fixed amount is deducted from the purchase price, regardless of the original price.
* Buy one get one free: The customer gets another product of equal or lesser value for free.
* Free shipping: The seller offers free shipping on the purchase.
* Bundle discounts: The seller offers a discount when multiple products are purchased together.

Discounts can be offered to attract new customers, to clear out old inventory, or to encourage repeat business. They can also be used as a marketing tool to create buzz around a product or service.