[Synnen]

HELP!

I am currently taking a business math course online. Unfortunately, my assignment is due before the professor has office hours again.

The assignment is to post on a discussion board. There are 4 parts, and I have the other 3 parts already (mostly) written. However, the first part of the discussion reads as follows:

Describe the difference between a single trade discount versus and discount series. Give an example of when it would be beneficial to choose one discount instead of the other.

I understand how to calculate the two differently. I also understand what a single trade discount is, and what a discount series is. However---what I do NOT understand is when it would be beneficial to choose one over the other!

I mean, I could give examples of specific numbers that would mean choosing one over the other would be more beneficial---but is that all this is asking? Am I reading too much into it? I can't figure out if it is JUST the numbers of the specific discounts that would make the difference in one being better than the other, or if there are actually specific business situations where one would be better.

Please help! It's been a long day, my mind keeps going in circles, and I just can't figure this out. I am not looking for the answer--just a nudge in the right direction so that I can write 2-5 paragraphs on this.

[ArcSine]

It does sound like a question that invites you to read more into it, than what's there in the first place.

Other than a transparent psychological slant, it does just come down to the numbers... after all discounts are taken--whether one or more--the final net cost of the item is all that matters.

One could argue that there's a psychological opportunity to exploit; e.g. a seller offering a 10-10-10 series discount might sound to the unwitting buyer like a 30% discount, instead of the 27.1% discount that it really is. But any buyer who can't see through that play shouldn't be buying in the first place. So I really can't see your assignment question having this aspect in mind.

You could, if you wanted, describe a situation in which a series discount arrangement is used to provide incremental discounts to a buyer, as successive benchmarks are reached. For example, the first 100 widgets are at list price. Place an order for > 100, and you get 10% off the amount over 100. Buy over 130, say, and you not only get the 10% off from the excess over 100, but also an additional 10% on any amount over 130. (Of course, the additional 10% on the excess over 130 would have to be defined as 10% off the discounted price that's in effect for > 100, in order to be a true 'series' discount.)

I'm with you... I don't see a whole lot that can be written on the topic. Maybe my 2 cents here will give you something to run with. Cheers!

[Synnen]

Thank you VERY much.

I gave up last night and got some (much-needed) sleep.

I have a much better perspective this morning, and your answer will definitely help me better define what I am trying to say in my paper!

Thanks so much!