What is a Discount ?

Written By Ops UrbanPiper (Collaborator)

Updated at January 6th, 2020

What is a Discount?

Discount is a reduction in price of an item from its original selling price. The seller deducts the discount from the gross or total price, and the buyer is supposed to pay the net amount. For eg : Chai Point offering Ginger tea at a discounted price of Rs 80/- instead of the actual selling price of Rs 100/-.

Does the term hold the same meaning in UrbanPiper ?

Yes , the Discount feature holds the same functionality, it helps the merchant configure the Discount on a set of desired items on the menu or the entire menu . 

Why sell something at a lower price ?

There can be multiple reasons for offering a discount. Some of them being:

  • Selling items that have low order volume. Incentivising a customer by reducing the price can hep move unsold stock.
  • Rewarding customer for being loyal to your brand.
  • Offering festive benefits to attract more customers

All driving more order volume.

Who bears the Discount amount ?

The Discount model is beneficial to both  ,  Aggregator and the Store in increasing their customer base & order volume. Thus both the parties maybe involved or it might be borne by either one.

  • Aggregator : The Aggregator bears the entire cost of the Discount amount and the store is reimbursed for the difference of Cost Price and Selling Price. For eg : Zomato offering 25% off on McDonald's menu.
  • Brand/Store : The Brand/Store bears the entire cost of the Discount amount  & the Aggregator does not give the reimbursement of the difference between Selling Price & Cost Price . For eg : Haldiram's offering a 30% discount on their menu.
  • Shared :  In this scenario both the Aggregator & Brand/Store bears a part of the value of  Discount amount .For eg : KFC bearing 20% of the Discount amount & Swiggy bearing 15% of the Discount value , the total discount now adding upto a 35% which is a substantial amount deducted from the original price .

Was this article helpful?