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Top Cash Discount Programs for Reopening Businesses after COVID-19

A cash discount program is a service offered to clients by businesses that allow trade by cash, where a discount is provided on the set price of a commodity. It is meant to encourage cash transactions over credit and debit cards. Bouncing back to business after COVID-19 would require cash discount programs, as people in the industry aim to maximize profits. It will also help to reduce costs by evading the fees charged in processing credit and debit cards. Besides, chargebacks that affect businesses negatively can be avoided by employing Cash Discount Programs. We will discuss various ways that traders can utilize to actualize the cash discount process.

Trade Discounts

This discount is offered to intermediaries who purchase goods in cash. It is meant to promote their loyalty to the business by selling the products at a slightly low rate. The trade discount rate for wholesalers might be marginally higher than the discount extended for retailers. Big companies may also use this discount to earn some shelf space with more significant traders like supermarkets and malls. It also aims at rewarding the business owner for acting as a link between producers and final consumers of goods.

Seasonal Discounts

Seasonal discounts in cash discount programs are discounts extended for outdated products and selling them at a relatively low price. Such deals are intended to work with the demand for a product. This will consequently increase the flow of cash transactions over the year. They are extended over special seasons of the year. This would work especially well for goods that were on the market pre-COVID-19 and are still up for sale now.

Quantity Discounts

This discount is extended for clients who buy goods in cash and hit a targeted quantity. This method aims at encouraging clients to purchase goods in bulk. It is applicable where a trader has excess goods in bulk. This program could also add slight discounts when a purchaser hits the specified target. It encourages client loyalty to the brand on sale. Quantity discounts are essential to boost back crumbling businesses, especially those that have accumulated dead stock.

Contractual discounts

This program extends a discount at a certain percentage for payments made in cash within a contract deal between a trader and a client. The final selling price can be derived from the original price list or the warehouse list. This discount can be between a professional company and a trader or an individual buyer and a trader. Partnership deals that may have been affected by the COVID-19 pandemic would use this discount to re-solidify the partnership’s terms and get the business back on track.

Geographical discounts

These discounts are awarded depending on the client’s jurisdiction. They aim at simplifying the total cost of purchase for a buyer, especially when the cost of transport is high. It will maximize profit to some extent and ensure a buyer doesn’t incur huge losses. This program is also meant to encourage the client to buy from the buyer consistently. With the ongoing pandemic, clients have been unable to reach specific products because of curfew restrictions and cessation of movement in and out of particular regions. Therefore, it would be essential to extend geographical discounts to consider the hassle of clients accessing goods.

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