The simplest and most accurate way to calculate discount percentage

Understanding how to calculate product discount percentage is important for sellers to know to serve the business process. So how to calculate the exact discount percentage? Let's refer to the full recipe right in the article below from 1C Vietnam!

1. The most common way to calculate discount percentage

Discounting product prices is an effective method to stimulate customers to quickly make purchasing decisions. To calculate the product price after applying the discount policy, the seller can apply the following formula:

Amount of item after discount = Price x [(100 - % discount) / 100]

Illustration:

When purchasing an item, the price of the item is 700,000 VND and is discounted by 10%. Applying the above discount percentage calculation method , the amount the buyer must pay to own the item is:

700,000 x [(100 - 10) / 100] = 630,000 VND

2. Formula to calculate the original price of the product after discount

After reducing the product price, what if the seller wants to calculate the original price of that item? In this case, the seller can apply the following formula:

Original price of product = Price after discount / % remaining after discount

Illustration:

When buying a product that is on a discount promotion, an item costs 30 million VND and has been reduced by 20% compared to the original price. So to calculate the original price of this product accurately, we calculate as follows:
Because the product has been reduced by 20% => 100% – 20% = 80%

Apply the formula to the example above:

Original price of the product = 30,000,000 / 80% = 30,000,000 / 0.8 = 37,500,000 VND

3. Appropriate time to reduce product prices

Salespeople not only need to understand how to calculate discounts accurately, but also need to know how to choose the right time to launch promotions to effectively attract customers' attention.

Here are some ideal times that businesses can offer product discounts:

• New store opening.
• Launching new products.
• Launch promotions on holidays and Tet.
• Shopping festival.
• When there is too much inventory left.
• When sales levels are poor.
• When you want to increase your competitiveness against your competitors.

4. The secret to ideal product discounts

To take full advantage of the benefits of promotional programs, sellers should refer to the following useful business tips to stimulate buyer appeal:

4.1. Increase the cost of the product before discounting

Before the "deep" discounts that take place every year, sellers should plan the time and level of product price increases appropriately. For example, if the shop owner wants to sell a T-shirt with an original price of 500,000 VND in a sale for 250,000 VND, then consider increasing the price to about 510,000 - 550,000 VND first.

The purpose of this price increase - decrease is for customers to clearly see the price difference before and after the decrease, thereby stimulating the shopping need to "buy now before you miss out". At the same time, this method ensures the shop achieves the desired profit level without having to reduce prices too much.

4.2. Leave discount information based on product value

For products of small value, the discount amount will also be small, so sellers should put the discount information in percentage form such as 10%, 20% or 50%. These numbers give an impression of the "strong" reduction of the product, stimulating customers to shop immediately.

For example: A ruler has an original price of 20,000 VND with a reduced price of 10,000 VND (reduced by 10,000 VND). Instead of displaying public information as "10,000 VND off", the seller should put the discount information with the phrase "up to 50% discount" so that customers can see the reduction level is more impressive.

For products of great value, the discount amount will be significant, so in this case, the seller should display the specific discount amount.

For example: When a seller wants to reduce the price of a washing machine with an original price of 10,000,000 VND to 9,000,000 VND (1,000,000 VND off), instead of publicly announcing "10% off", the shop owner should advertise is "1,000,000 VND immediate discount", helping customers easily visualize and realize that this is a significant discount, which will stimulate them to buy immediately.

4.3. Some conditions may apply when using product discount codes

Sellers can increase the rate of customers returning to purchase or increase the number of products sold per customer by applying conditions when using discount vouchers.

Eg:

• Customers with invoices over 500,000 VND will receive a 10% discount on the total invoice value.
• 10% discount on some specific products for first-time customers.
• Voucher discounts 30% of total bill for the customer's next purchase.

In addition, to support the implementation of product discount programs, businesses can use 1C:Company Management software - one of the best comprehensive business management solutions today. The software provides many outstanding features, including the ability to calculate trade discounts, payment discounts and period-end discounts, and set prices for each customer appropriately. physical. The software will contribute to helping businesses improve performance in discount policy management, significantly optimizing time and costs.

So understanding how to calculate product discount percentage is extremely important, helping sellers not only sell the highest number of products but also earn the expected profit. Hopefully the article that 1C Vietnam has shared has helped sellers more easily reduce product prices effectively.