Assalamualaikum and good day, students.

Today, we will learn about price discounts and allowances. These are special offers businesses give to encourage customers to buy more, pay earlier, or support their products. Let me explain each type in simple words with examples from Malaysia.

1. Cash Discount – This is a discount given to customers who pay early. For example, a supplier in Shah Alam gives a 5% discount if you pay within 10 days instead of 30. This helps improve cash flow.

2. Quantity Discount – This discount is given when customers buy in bulk. For example, if a kedai runcit in Alor Setar buys 100 cartons of Milo, they may get a lower price per carton compared to buying just 10 cartons.

3. Trade/Functional Discount – Given to distributors or retailers for performing certain roles like storing or promoting the product. For instance, a grocery store in Kuching gets a special price from Nestlé for promoting their cereal in-store.

4. Allowances – These are reductions given for doing specific things like advertising. For example, if a dealer in Penang promotes Proton cars in local newspapers, they may get an advertising allowance.

5. Seasonal Discount – This is a discount given during off-peak seasons. For example, resorts in Langkawi may lower prices during monsoon season to attract tourists.