A cash discount strategy is used in order to get customers to make timely payments.
Seasonal discounts are a good method used by manufactures to smooth or stabilize the production cycle. The best example is a ski manufacturer offering discounts to retailers during the spring and summer months. Out-of-season discounts encourage the retailers to order early and can smooth out some of the seasonality of the ski manufacturer's business.
Functional discounts are given to customers for performing certain functions, such as selling, storing, etc. They are not methods to smooth the production cycle.
Quantity discounts are used in order to get customers to make high volume purchases.
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