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Strategically offering discounts to your customers can help you win business, build customer loyalty, move inventory efficiently, and more. 

In this blog, we’ll be covering three types of discounts that can benefit your business, and how Routeique’s supply chain software make applying and managing these discounts easier than ever. 


3 Types of Discounts To Offer Your Customers


Early Payment Discounts

Research by MarketInvoice found that nearly ⅔ of invoices issued by Small and Medium Enterprises over 2017 were paid late. 

In addition to ensuring timely payments, offering discounts to clients who pay early can

  • build loyalty, and encourage customers to choose your business over competitors

  • create liquidity and sharpen your cash conversion cycle


Quantity/Volume Discounts 

Benefits of offering bulk product discounts: 

  • Offering a trade discount to customers whereby prices are significantly reduced if they purchase in bulk is a great way to alleviate excess stock.

  • It can contribute to positive customer perception by demonstrating that you offer quality goods at a reasonable price.

At the same time, the Harvard Business Review notes that offering bulk product discounts too hastily or without proper consideration can cut into operating expenses or profit margins. 

In a 2013 commentary, an author suggests that these types of discounts are most useful for:

  • capitalizing on diminishing utility

  • competing with rival businesses 

  • locking in customers 

  • encouraging a smaller number of large bulk purchases, rather than small ones


Product Discounts

You can also offer discounts on individual products. This may be to cut down on product waste as expiry dates draw near, provide a seasonal special, reduce excess stock, or create a special offer.


Using Routeique To Set Discounts

Routeique’s price plan management tools enable you to set pricing in up to three tiers. As your business grows and changes, you can edit or modify these tiers. 

Additionally, like all of our products, it helps create a synchronized supply chain. It ensures that clients ordering through the Customer Order Portal will always have the most accurate price when they place their orders.

Our system allows for up to three tiers of pricing:

  1. The baseline, everyday price

  2. Price plan - This tier is for all customers on a specific price plan.

  3. Customer-specific pricing - This tier is used to give loyal customers a bonus or accommodate customers who negotiate more assertively.

Whether your goal is to offer reduced prices on specific SKUs or to offer customers special pricing to earn customer loyalty, Routeique has you covered.


Get In Touch

To learn more about our solutions for distributors, manufacturers, and more, get you can reach out to our expert team through the contact form below.

To keep up to date with developments at Routeique, check out our weekly supply chain roundups, visit us on LinkedIn, Facebook, or IG.

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