Volume Discount

Loyalty discounts are a major part of POS. A discount comes into affect based on the running total of sales a customer generates through the season.

Table of Discounts

Running Total ($) Percent of Discount
0 – 49.99 0
50 – 199.99 10
200 – 4,999.99 20
5,000 + 30

Important Discount Concepts (That Could Cause Confusion)

1.      This program remembers the discount rate from the previous season and allows that to be the starting discount rate for this season. The sales volume towards a discount, however, starts at zero with each new season. Therefore if a customer spends less than $50 this season his discount rate will revert back to 0 at the beginning of next year.

2.      Discounts are retroactive back to the complete running total for the season. If, for example, Bob’s first purchase had actually come to $49.99. There would still be no discount.  But suppose he comes back the next day and the total comes to $5.01. He is now in discount territory and receives a 10% discount on the $5.01 that he just spent which comes to fifty cents. But he also receives a 10% discount on the first $49.99 which hasn’t been discounted yet and that comes to $5.00. So how much does Bob owe on his second purchase? Nothing. The program shows that we actually owe him 49 cents which you give to him. This situation of actually giving money to the customer can occur at times of transition into a bigger discount bracket. Don’t worry, the program is not broken. Just give the customer the money.

3.      Discounts do not occur on Sale items. As the season progresses certain items will be put on sale. Since they are already discounted they will not be included in the customer discount. If, for example, someone purchases only sale items no discount would be applied to the final total. Whatever they purchased, however, is still added to their running total. You will know an item is not discounted when noDp (No Discount Push) is checked off at the end of the order line for that item. The two items in the following diagram are on sale so no discount.

Leave a Reply

Your email address will not be published. Required fields are marked *