a reduced price to encourage the purchase of a particular product in the off-season; perhaps better thought of as an ‘out-of-season’ discount.

What is a seasonal discount example?

Seasonal discounts are price reductions given for out-of-season merchandise—snowmobiles discounted during the summer, for example. For example, a 2 percent discount on bills paid within 10 days is a cash discount.

What are seasonal discounts quizlet?

Seasonal Discounts (Types of Consumer Price Reductions) Price Reductions offered on products and services to stimulate demand (for customers) during off-peak seasons.

Why did you decide to give a seasonal discount?

Retailers use seasonal discounts year-round to move inventory that is going out of season. But seasonal discounts can also apply to service businesses, and this can allow a company to afford to keep valuable skilled labour even when work volumes would normally be very low at certain times of the year.

What is a seasonal pricing and why is it important?

Some try to diversify product lines, hire temporary help or simply close down during the slow season. One of the most common and effective solutions is to offer seasonal pricing. That means charging different prices for products and services depending on whether it’s high season or low season.

Why are quantity discounts most often used quizlet?

Why are quantity discounts most often used? b- Quantity discounts encourage wholesalers or retailers to buy in larger amounts. When a buyer pays a lower price for buying in multiple units or above a specified dollar amount, what is the buyer receiving?

What are seasonal rates?

In simple terms, seasonal rates are those that deviate from your standard basic price during certain times of the year or during particular events. For example, you might charge more for your beachfront property during the peak of summer due to high demand, but drop your prices in winter to encourage more guests.

Why are quantity discounts most often used?

A quantity discount is often offered by sellers to entice customers to purchase in larger quantities. The seller is able to move more goods or materials, and the buyer receives a more favorable price for them.

What is package rate?

A room rate that includes the sales of goods and services. The most common time of Package Rate is in an all-inclusive hotel where in the purchase of a room also include a certain amount of drinks, meals and activities during a stay.