WHAT IS DISCOUNT AND WHAT IS INCENTIVE?

Note: Understand the percent (%) which mean one over hundred (1/100). The above give the two different percentage which will be used in this teaching. The discount precent and the incentive percent. In a case a person made be give the both.

What incentive?

Incentive is a HR term used in human resource management for employee appraisal and for motivation. Incentive is not a discount, meaning, it could be somethings else. Salary incentives or discounts incentives on a product.

Incentive is not a word ?generated for sale rather for the human resource management(HR). Note in each field of education or career there are words used, interchanging, ?which are defined to mean the something but is pronouns differently, there made be some differences. As in the term discount and Incentive. The two are closely related. However, they are different in some ways.

Incentive is for employees while discount is for customers. Note a person can be an employee and a customer at the same time in some condition. If such happen that person get an incentive and a discount. However, a customer not an employee cannot get incentive in a company which they are not working for. ?

?many people not qualified and in the area of sale misunderstand, the word incentive. They take it as a sale word. But as mentioned ?Incentive is not a discount. Neither is it a marketing word to used in the business as mentioned. ?In many areas of business worker are just separated from customers benefits, in any way. However, in some business they get employee into the business.

Some company with rather not want an employee to buy while working within the company. In some business called a nonprofit organizations, they stop employee from buying product donated to the organization. But other organizations allow the employees to. In addition, they give incentives on product. Incentive, is build on conditions. Meaning only if the employee buy or do something with that incentive be given. But who do incentive work or is calculated? Below is an example of a problem for you to understand how incentive work. I also created the solution to the problem to help you understand the problem.

Let me work a problem

The king’s company human resource departments had offer all its employee a 15% incentive on all its products at the company marketplace. On December 15, 2024, a cellphone will be ?put on the sale floor for 250.00 at a discount rate of 6%. one of the company employees, decided to buy a phone. What is the cost of the phone after that incentive? What is the cost of the phone after the discount? What is the cost of the phone after the incentive and the discount?

Incentive

To work the problem you must understand, the language within the question as a businessperson or the salesperson

. There are many people in the areas of sale without the skill needed to understand. In other area there are software applications been developed to do the job. That does not make a person to understand the knowledge, which is in the calculation of incentive. In this example you will understand how to calculate the incentive if you don’t know it. What you need to first read the question or problem very carefully. You should understand the problem, identify the incentive given within the problem. The price of the product dating. As in the above there is no incentive given in the problem on reason the date had not yet reach it maturity date. Thus, the incentive is spell out. The time to give such incentive will start December 15, 2024. taking into consideration i = incentive, Price = prices and D= discount.?? i will n = 0 because the date had not yet reach.? P = 250 and R= 6 and D = 1/100

Incentive

P = I

250 = 0

P = 250×0/100

P= 250???? ?????????????

?Note ?: price will? be the same in all the sale, on reason that the date have not reach. It is important to understand these things in the sale areas because it can cause many problems. For example at time a customer or employee will argue on a discount of incentive which had not reach it maturity date of had pass the maturity date. It is greater that you look up for these information and at what time the incentive of discount is mature for.

Another Example to increase you understanding.

Question 2

The king’s company human resource departments had offer all its employee a 15% incentive on all its products at the company marketplace. On January 15, 2024, to December 25, 2025 a cellphone will be ?put on the sale floor for 250.00 at a discount rate of 6%. one of the company employees, decided to buy a phone. What is the cost of the phone after that incentive? What is the cost of the phone after the discount? What is the cost of the phone after the incentive and the discount?

Solution

CAI =Cost of phone after Incentive

CP= Cost of phone

R = rate of incentive

I = Incentive

The question asked for the cost after the Incentive.

Cost after Incentive will = CP × R

I = 250 × 15% I = 250 × 15√100

I = 250 ×0.15

I = 37.5?

CAI

CAI = CP – I

CAI = 250 – 37.5 CAI = $212.5 ?is the cost of the phone after incentive.

What is the cost of the phone after the discount?

CGD = cost of the phone after the discount.

CP = cost of the phone

RI = Incentive rate

DR= Discount rate

CPD= cost of the phone after discount.

D = CP × DR

D = 250 × 6%

D = 250 × 6√100

D = 250 × 0.06

D= 15

CPD = ?250 – 15

CPD = $235.00

What is the cost of the phone after the incentive and the discount?

CID = CP – ( ID+D)

CID = 250 – (37.5 +15)

CID = 250 – 52.5

CID =? $197.5 is the cot of the phone after the discount.

The word discount and incentive had been misunderstood by many people, in mostly for those called come let sell. The Come let sell are people who called themself sale person of sale person will out the university education, In the area of sale and marketing. The are the most uneducated people in the business field. Theses people cause many problem for educated people trying to help them understand sale and marketing. One of the biggest problem is they acted as thought have the business education. As a business professional, I fine it hard and very discouraging to have someone not educated telling me what i am educated about. However, they are put into many business companies, as leader and manager. Some of the business subjective they have no understanding of are sale and marketing. Discount and Incentives.

What is Discount and how do it work?

Discount is a term used in marketing and sale as a business Strategy to move sale or sell a product. However to many customer, it is define as a give away on sale. That is not true. No business want to lost in profit. In true there is nothing like free in business. Reason is, business is for profiting making and not a donation or charity organization. A business will never give away it principle or profits.

If business do not give out Principle and Profit who to they manage discount and incentive?

Discount is mostly an indirect payment. Meaning someone or some way the company is going to get that lost back. Before giving out a discount a business will have to know the effect of the decision. Discount is done in many ways. Some of the most common discount, are discount on sale. Seasonal discount and more.

The discount strategy

As mention discount is a business strategy. It is part of the business strategy used in marketing. The strategy is created to bring in more customers but not have any lost to the company or business. Meaning there should never be a free discount. The customer should pay back the discount indirectly. This is done so that discount cannot become a culture of the business at a lost. No this there is not like free discount.

For example:

A business could Declay a discount on a set of product at 5% and increase the cost of the price of another product which is hot in sale at 5%. This make the customer to believe that there is a give away. However, there is not give away. That given customer will be encourage to buy another product at the increase. Or another customer would come and buy the product at that increase. This make the discount to never be free.

• The business rule is the company will never be the loser in the traction. One of it customer will pay for the Couse. Note, is discount is usually done with good not selling in the business.
• Discount after principle/ A company would also discount a goods after it have sold the goods and gotten it principle. Meaning the cost of productions of that goods. What is left is profits. The company could discount a part of the profit but still not a lost. For example if the business had a $100.00 on a profit it could be discounted at a 5%. or 1%. In most cases if the company had place the goods at the beginning at a high profit. In business the administration can play in the profit, in a very carful way. Note that that profit is still an important part to pay employees. This also mean that the discount can not be free.
• Discount follow by price discrimination/ is base on market value or individual wealth. In a market with poor buyer. A business could discount a product while in another market or country they will increase the price or the product to cover the discount. Meaning the rich pay for the poor.
• Market control or competitive pressure/ a business could also discount a product to put pressure on their competitor to reduce theirs product at a cost of lost. This could help the business to take over the market after the competitor had gone out of the market.
• What such business could do is produce the product in another nation for very low price and bring it in a market or country where it is sold for higher price. A competitor producing their goods in that market for a higher price with fine it difficult to compete in discount with a company producing at a low price.

There are many different way of applying discount in the business system. But do is discount calculated? This discount is calculated on math principle. The one administering the discount will need to have a high knowledge of how dis work else they will have no understand but end company into a lost. Belove is a problem I created and solve to help you understand the process of discounting.

Example: if the price of a car is $1000.00 discounted? at a rate of 5%, what would be the price of the car after the after the discount?

P = Price

R= Rate

D= Discount

Price = rate √discount

P = R √D

P = $1000.00/ is the price of the car

R= 5/ is the rate.

D= 1√100 is the discount.

P = R × D

1000.00 = 5 × 1√100

P1000 = 5√100

10= ?5×(????? ) = 10 × 5 = 50

Discount = $50.00

Price after discount = 1000 -50 = $ 950.00

The price = $950.00 This help you understand what is a discount and how it work.

Understanding discount and Incentive is very important for those lacking the knowledge and skill to do such word. Leading these skill will give a great improvement.

This book was Written by: Dr. Lemuel B. King.

Thank you for using the Icons of Leadership articles book. If you used this work, you must credit, Dr. Lemuel B. King, as the author and owner of the book.

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