Concept in Definition ABC

Haggling cultureThe concept of rebate is part of the commercial activity. A discount is the decrease in the price of a product or a service.

It is common for this term to be used in its plural form, rebates. During a certain time, some establishments decide to reduce the price of the products for sale and there is talk of the sales period. It is a strategy commercial to encourage consumption and, at the same time, reduce the stock. During the sales the merchants indicate in each product the percentage that is discounted and it is frequent that the previous price and the final price appear.

Special times and dates where they apply

What rule There are generally two classic sales periods: after the Christmas holidays and in the first weeks of summer. However, they also occur in other circumstances (for example, in the liquidation of the products of a establishment).

A clear rules

To ensure that rebates offer certain guarantees to the consumer regulatory standards apply. There are basically two general rules:

1- The obligation to clearly indicate the information of the discount in the price of a product.
2- That the product cannot have been made expressly for the sales.

For the sales to be profitable, it is very convenient to accompany them with an attractive advertising strategy. Strong and shocking expressions are used: crazy sales, total liquidation, the big discount week, buy two get three, etc.

How did this market trend emerge?

From a historical point of view, this commercial practice took its present form when large shopping centers emerged in the 19th century in some large cities. These centers use this strategy because the profit margins are higher than those of small businesses.

In any case, a sale is a discount and this practice is directly related to the haggling culture in many countries. It's a tradition widespread and as old as money itself.

Haggling is a negotiation between the seller and the buyer regarding the price of a product. The buyer seeks the highest possible discount and the seller tries the opposite. There is a certain dispute dialectics between the two and usually ends with an agreed price.

The culture of haggling is typical of certain markets, bazaars, street fairs or tourist areas. For some it is not simply a negotiation but there is a whole strategy or even a certain art.