Posted in Marketing and Strategy Terms, Total Reads: 2614
Definition: Seasonal Discount
A discount is offering of a product or a service at a price lesser than the marked or the original price. A seasonal discount is a discount which is offered on seasonal goods or at particular seasons. For example, there are discounts on products like automobiles, electronics etc. which are offered during festive seasons like Diwali, New year etc.
The seasonal discount being offered on products and services is being done so in order to lure the customers to buy their offering. A seasonal discount over the year has become a compulsion on the part of companies to provide to the customers. A firm which is not offering discounts during some seasons will lose out their customers to other firms. There are some firms which offer discount on other seasons as will and name it off season discounts where the firms may not be earning as much or may have a slack period.
The disadvantages of a seasonal discount is that a firm may have to offer these discounts on every season which comes during the year. It becomes mandatory for the firms to offer these discounts. Not offering the discounts on these seasons may turn the customers dissatisfied and disgruntled and may not buy the product. Hence, it becomes imperative for the firms and companies to look into this and not offer discounts at every season which comes. For short term profit the companies in this way are hampering their long term profits.