There are several types of discounts that businesses can offer to attract customers and increase sales. Here are some of the most common types of discounts: Percentage-based discounts: This type of discount offers a reduction based on a percentage of the total price of the product or service. Cash discounts: These discounts are aimed at accelerating payments and improving cash flow. For example, a business may offer a 2% discount if payment is made within 10 days, but the full amount is due within 30 days. Quantity discounts: Discounts based on the quantity purchased. For example, a business may offer “buy 10 get 1 free” or “10% off when you purchase 3 or more”. Trade or functional discounts: These discounts are offered to middlemen for the functions they perform in the distribution of commodities. For example, book sellers may receive discounts from publishers based on the quantity of books ordered. Seasonal discounts: Price reductions may be offered at certain times of the year when sales would normally be slow. For example, a hotel at a ski resort might offer low prices during the summer months when there are fewer tourists. Promotional or cash-off discounts: These discounts are used to clear out inventory, reward customers, or target a specific audience segment. For example, a business may offer a “buy one, get one free” discount or a “refer a friend and get $10 off your next purchase” discount. The type of discount a business chooses depends on its objectives, the nature of the product, market conditions, and customer behavior. Regardless of the type, discounts should be used strategically, ensuring that they achieve the intended goal without unnecessarily eroding profits.