Rebate vs. discount: what are the differences?
When setting prices for your products or services, you always need to keep in mind the volume of sales you will get, the profits you will make, and even the way your brand is perceived.
Rebates and discounts are distinct forms of cost reductions which directly or indirectly promote the overall sales of a business. Both pricing terms may sound similar, however, there is a considerable difference between discount and rebates which we explore in more detail below.
What is a discount?
Discounts are typically applied at the point of purchase to reduce the buying price: when you get a bill, you pay the discounted value. It’s all very immediate. The discounted price is visible as of the precise moment that the purchase would have been made and therefore offers immediate satisfaction.