A percentage discount, a widely used term in commerce, refers to a reduction in the original price of a product or service, expressed as a percentage. For instance, a 50% discount means the customer pays half the original price. This concept plays a vital role in retail, marketing, and consumer spending.
Understanding percentage discounts offers several benefits. It enables consumers to make informed purchasing decisions, comparing prices and identifying value. For businesses, it helps attract and retain customers by offering competitive discounts while managing profit margins. Historically, percentage discounts emerged as a convenient and transparent way to convey price reductions.