Difference between Discount and Rebate
|
Basis |
Discount |
Rebate |
|---|---|---|
|
Meaning |
It is the reduction in the price of a product or service. |
It is a partial refund of the purchase price after the sale. |
|
Timing |
Discount is applied at the time of purchase. |
Rebate is typically claimed after the purchase is made. |
|
Purpose |
Discount encourages immediate sales. |
Rebate encourages future purchases or brand loyalty. |
|
Redemption |
Discount is instantly deducted from the purchase price. |
It requires the buyer to follow specific redemption steps. |
|
Visibility |
Discount is typically visible to all customers. |
It may require meeting specific conditions to qualify. |
|
Processing |
It is simple and straightforward. |
It may involve paperwork and waiting for reimbursement. |
|
Initiation |
It is offered by the seller or retailer to attract customers. |
It is often initiated by the manufacturer or distributor. |
|
Example |
Coupons, seasonal sales, bulk purchase discounts |
Mail-in rebates, online rebates, cashback offers |
Difference between Discount and Rebate
Discounts and Rebates are both mechanisms used to lower the price of a product or service, but they operate in slightly different ways. A discount is a reduction in the price of a product or service applied at the time of purchase. However, rebates are partial refunds offered to customers after they purchase.