商务交流 Chapter 18.ppt

Unit 18 Discount 1.Teaching goals: 1. The definition of discount 2. The types of discount 3.Some expressions related to discount 4. Some sentences related to discount 5.To be able to write letters of offering a discount Definition Discount is the act of reducing the selling price of merchandise in the process of business trade. Types Trade discount Quantity discount Cash discount Seasonal discount Trade discount Manufacturers and dealers often allow to their best customers, and those buying in large quantities, what is known as trade discount. This means that a discount is allowed from the amount of the bill. Trade discount Suppose A buys from B $200 worth of goods. He is allowed a discount of 10% from the list price. Then he would have to pay only $180 to B. Suppose the terms had stipulated that he be allowed a discount of 10% and 5% off from the list price. Trade discount This would not give him a deduction of 15% from the $200, but it would give him a further discount of 5% of the $180, or $9, making only $171. Quantity discount A reduction in price per unit for orders that meet minimum quantity standards established by the seller. A quantity discount may apply to a single order or to a series of orders placed within a certain period. Also called volume discount. Quantity discount Incentive offered by a seller to a buyer for purchasing or ordering greater than usual or normal quantity of goods or materials, to be delivered at one time or over a specified period.  Cash discount Goods are generally sold on credit. The sellers usually allow the deduction of a certain percentage of the total if the bills are paid before they are due. Cash discount Thus, if the whole amount is due in sixty days, the wholesaler may allow a certain percentage off from the total if it is paid within ten days. Cash discount Suppose the percentage that would be allowed off is three. Then the terms of discount might appear on the bill as 3/10 - net