The word ‘discount’ enlivens the innate shopping lover in almost all of us. When we see a ‘discount’ board, definitely we would at least make a quick search if the product that we always wanted to buy is available on discount or not. Discounts are so attractive, aren’t they?
Here, let us understand what exactly discounts are and how to calculate them, besides knowing some useful knowledge about discounts.
The word ‘discount’ means a reduction in the price of an item available for consumer purchase. A discounted item is available to the customer at a price lower than the MRP (Maximum Retail Price).
☛ Discount Formula
The value of the discount is calculated by using the formula given below:
Price after discount = Original price or MRP * (1 – (discount / 100))
Note that most discounts are marked in percentages.
For example, a branded T-shirt costs Rs.500. It is available at a 20% discount on a sale. It means the following:
- The amount that is being deducted from the MRP is 20*500/100 = Rs.100
- The amount that the customer pays after the discount = MRP – Discounted Amount = 500 - 100= Rs.400
- Savings to the customer because of the discount = Rs. 100
☛ Types of Discounts
Do you know that you can ask for different types of discounts when you are purchasing a car or house or even at a restaurant or flight booking? Yes, check them here:
☞ Corporate Discount
This discount is specifically designed to attract corporate employees. Most companies mark 1-5% of corporate discounts on their products to spread their brand presence, to compete with their competitors besides to increase their sales among the corporate companies and their staff. If you belong to a corporate company, you can always check with your salesperson if you are eligible for any corporate discounts available with them.
☞ Finance Option Discount
If you are opting for purchasing any product such as TV, laptop, bike or any other bigger household appliance on finance option, you can find out if you can get this discount. Your seller provides these discounts as they get commission too from the finance companies that you take your loan from. Typically, these range from 0.5 – 2%.
☞ Seller Discount
These discounts are marked by sellers, mainly during occasions such as festivals, new year days or their anniversaries. But beware, most sellers offer discounts on items that are not being sold for long or not much in demand or that reaching their expiry date. So double check the quality if an item, if you find it is discounted from the seller side.
☞ Loyalty Discount
This is another type of discount offered by companies to retain their customer base. Most companies offer discounts to their long existing customers. Hence, it is always better for you to check for a discount, especially if you have been using or purchasing the products of a company since long.
Try to buy assets at a discount than to earnings. – Walter Schloss
☛ How to use CalculatorHut’s Discount Calculator?
Our discount calculator helps you to know your savings you can enjoy because of discounts. You can easily calculate the price that you have to pay, especially when the marked discount percentages are numbers such as 33%, 22%, etc.
For this, all you need to do is:
Enter the original price or MRP before the discount and the percentage discount that is being offered to you.
You will get the savings and the final price that you have to pay after the marked discount.
It's cool…isn’t it? You can also get this simple and easy to calculate discount calculator as a widget on your website. Get in touch with us at [email protected] for a free customized widget set up.
Have you checked our huge range of finance calculators? Happy Calculating!
Don’t discount yourself, no matter what you are doing. – Mark Zuckerberg