All you need to know about bonuses & discounts

Different companies offer bonuses and discounts to promote their products. As a consumer, you should always look out for the best bonuses and discounts to enhance your savings when buying certain commodities. It is essential to learn how to get bonuses & discounts. Many people may not know the difference between a discount and a bonus. Let’s look at the definition of a discount and that of a bonus.

Discount

The discount is the reduction of the initial price. It is done in terms of percentages of the initial price. If a product costs a certain amount and you get a discount, you will pay a lesser amount. Many companies offer discounts when promoting their products and looking to increase their sales. Trade discounts are offered for the wholesalers who buy in bulk.

Bonuses

The bonuses are additions to what you buy. The main difference between bonuses and discounts is that a bonus is an addition of a product and a discount is a reduction in price. Bonuses are given by individual companies for loyalty. Bonuses include the offers that state ‘buy three get one free’. The bonuses are usually seen as rewards for either buying for a long time or buying many goods.

Many people prefer bonuses to discounts, and some of the reasons for this are;

Mathematics problem

Calculating discounts is a little bit complex as it involves percentages. The bonuses, on the other hand, is the simple mathematics of adding. As a consumer, you may opt for a bonus as you know what you will get rather than a discount, which you are not sure the price reduced.

More products

Bonuses provide the opportunity to get more products, which is your ultimate aim. Many times your main aim is to buy products needed at high quantities. Discount offers the same number of goods for a smaller price hence not very enticing. A bonus, on the other hand, offers an addition to what you are buying hence you will be tempted to go for the bonus.

As a company looking to promote using bonuses or discounts, you can look at what you want to achieve. There are things that you may want to consider such as;

Aim

The aim of the bonuses and discounts are different. If you are looking to reward your customer for loyalty or buying your products, then bonuses are appropriate. Discounts are often used to increase the number of sales because of the higher the price, the lower the demand.

Types of products

If the products are required in large quantities, then a bonus is better as it encourages the buyer to buy a lot of products to achieve the bonus. If the products are required in low quantities, then use discounts.

Bottom Line

They are differences between bonuses and discounts. There are several reasons why people prefer bonuses when buying products such as stated above. When deciding whether to use bonuses or discounts to promote your products, you need to be aware of different factors, such as the aim and type of products.