Difference Between Discount And Rebate

Difference Between Discount And Rebate

The main dissimilarities or differences between discount and rebate can be pointed out as follows:

1. Introduction

Discount: Concession in the purchase price of goods or services on the spot during a sale

Rebate: Partial return of the purchase price by the trader or seller after the payment is made by the customer

2. Time

Discount: It is made immediately at the point of sale

Rebate: It is made after the full payment

3. Availability 

Discount: It is provided to all customers

Rebate: Only specified customers can enjoy the benefit of rebate

4. Popularity

Discount: It is more popular than rebate

Rebate: It is less popular

   

Also Read: 

Difference Between Cash Discount And Trade Discount

5. Given On

Discount: It is given on the initial price or purchase price of the products or services

Rebate: It is given on rent, utility bills, consumers electronics etc

6. Type Of Strategy

Discount: It is a marketing strategy to sell the products

Rebate: It is a sales promotion strategy to encourage heavy purchase

7. Price Reduction

Discount: It is reduction in the initial price

Rebate: It is refund of some of the purchase price

Discount Vs Rebate (Comparison Chart)

Basis For Difference	Discount	Rebate
Introduction	Concession in purchase price	Partial return of purchase price
Occurrence Time	Point of sale	After payment
Availability	For all buyers	For specific buyers
Popularity	More	Less
Given On	Initial price of the product	rent, utility bills etc.
Strategy	Marketing strategy	Promotion strategy
Refers To	Price reduction	Refund of some price

I hope this post is helpful to understand the difference between discount and rebate and to make comparison between them.