What is Discount?
A discount is a reduction from the normal selling price, given as a fixed amount or a percentage on an item or a whole bill.
Updated
Meaning
English
A discount is a reduction from the normal selling price, given as a fixed amount or a percentage on an item or a whole bill.
Roman Urdu
Discount normal qeemat me kami hai, jo kisi item ya poore bill par fixed raqam ya percentage me di jati hai.
Also called price reduction, offer, rebate, round-off.
Example
A regular customer buys 8,400 rupees of groceries. The owner gives 400 rupees off the bill. On a 20% margin, that discount takes almost a quarter of the profit on the sale.
How it works
Discounts in Pakistani retail are often given by feel: a round-off for a regular customer, a bargain on a big bill, a festival offer at Eid. Each one is small, but together they are usually the biggest gap between the price list and what the shop actually earns.
Two rules keep them under control. First, set a limit, such as a maximum percentage per bill, above which the owner must approve. Second, track discounts by staff member and reason, so the owner can see where they go. Planned offers, such as a discount code shared on WhatsApp, are easier to measure than ad hoc ones.
In Nafaa
At the Nafaa counter, F4 opens the discount on the bill. Shops can set a discount limit; going above it needs a PIN, or a person the owner has given the "discount above limit" permission. Discount codes can be limited by branch, customer and date, and the profit report shows what discounts took from profit.
Related terms
- Gross Margin
Gross margin is gross profit shown as a percentage of the selling price: (selling price minus cost) divided by selling price.
- Combo Deal
A combo deal is a set of products sold together at one price, usually lower than buying each item separately.
- Loyalty Points
Loyalty points are credits a customer earns on purchases and can later redeem for a discount or a gift, to encourage repeat visits.
- Markup
Markup is the amount added to the cost price to get the selling price, usually expressed as a percentage of cost.