Rabatt

Rabatt is a price reduction offered by sellers to customers or business partners. It is commonly used in retail, wholesale, and business-to-business negotiations and can serve to stimulate demand, reward loyalty, encourage early payment, or clear excess stock.

Discounts come in several forms. Trade discounts are reductions from the list price granted to wholesalers or retailers. Quantity discounts reward larger purchases with a lower unit price. Cash or prompt-payment discounts encourage timely payment, often expressed as a percentage off if paid within a set period. Seasonal or promotional discounts reduce prices for limited times, while loyalty or bundling discounts reward repeat customers or encourage purchasing multiple items.

A discount is typically applied to the invoice total, yielding a net price for the buyer. In accounting terms, discounts reduce gross revenue and are often recorded as a contra-revenue item or as a separate discount allowance. For buyers, discounts lower the purchase cost and can affect cost of goods sold and profitability.

Legal and practical considerations include clear communication of discount terms, eligibility criteria, and any minimum purchase requirements. Advertising discounts must be truthful and not misleading, and certain jurisdictions regulate price promotions to prevent unfair practices or discrimination.

In regional usage, Rabatt is the word used in German and many Nordic languages to denote a price reduction. In Swedish, the term can also mean a garden bed (rabatt). In economics, Rabatt may appear in discussions of discounting future cash flows, though this use is more technical.