Discount vs. Concession — What's the Difference?
By Maham Liaqat & Urooj Arif — Updated on March 29, 2024
Discount is a reduction in price on goods or services, often used to incentivize purchases, while concession is an allowance or compromise in a disagreement, often seen in negotiations.
Difference Between Discount and Concession
Table of Contents
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Key Differences
Discounts are typically offered by sellers to stimulate sales or clear inventory by temporarily reducing the price of goods or services. This strategy is often employed during certain seasons or promotional events. On the other hand, concessions involve giving something up or agreeing to a compromise, especially in the context of negotiations or disputes. This could be seen in various scenarios, including business negotiations, diplomatic discussions, or even personal relationships.
Discounts are usually predetermined and have specific parameters, such as a percentage off the listed price, applicable to certain products or services for a defined period. Conversely, concessions are often the result of discussions or negotiations, tailored to the specific demands or needs of the parties involved and can vary widely in nature.
The strategy behind offering discounts is often related to marketing objectives, inventory management, or competitive positioning. Discounts are used to attract attention, encourage purchases, and increase customer loyalty. Whereas, the rationale for concessions is rooted in conflict resolution, relationship management, or strategic compromise, aiming to find a mutually acceptable solution to an impasse.
Discounts are quantifiable and easily compared, making them straightforward for consumers to understand and for businesses to advertise. In contrast, concessions are more about the qualitative aspects of an agreement or relationship, focusing on flexibility, understanding, and cooperation, which can be more complex to quantify and communicate.
Comparison Chart
Definition
A reduction in the price of goods or services.
A compromise or allowance made in a dispute.
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Purpose
To stimulate sales or clear inventory.
To resolve disagreements or maintain relationships.
Nature
Financial adjustment.
Can be non-financial, such as terms adjustment.
Determination
Predetermined and often public.
Result of negotiations, tailored to specific needs.
Strategy
Marketing and sales tactic.
Conflict resolution and relationship management.
Compare with Definitions
Discount
A percentage reduction on the retail price.
The store offered a 20% discount on all footwear.
Concession
A compromise reached in a negotiation.
The company made concessions on work hours after negotiations.
Discount
A deduction from the usual cost of something.
Members receive a $10 discount on their purchases.
Concession
An admission in an argument for the sake of agreement.
He made a concession to avoid prolonging the dispute.
Discount
A financial incentive to encourage buying.
Bulk purchases come with a substantial discount.
Concession
An allowance or reduction in demands.
The seller agreed to a concession on the asking price.
Discount
A price reduction for a particular group.
Students get a 15% discount on software subscriptions.
Concession
A special allowance or rate.
The museum offers concession rates to seniors.
Discount
A promotional offer to reduce stock.
The year-end discount aims to clear last season's inventory.
Concession
A privilege granted in a particular situation.
The contract includes a concession for early termination.
Discount
To sell or offer for sale at a reduced price
Discounting all merchandise.
Concession
A thing that is granted, especially in response to demands
The government was unwilling to make any further concessions
Discount
To reduce in quantity or value
Discount a price.
Concession
A preferential allowance or rate given by an organization
Tax concessions
Discount
To deduct or subtract from a cost or price
Discounted 30 dollars off the price of the coat.
Concession
The right to use land or other property for a specified purpose, granted by a government, company, or other controlling body
New logging concessions
Discount
To determine the present value of (a future payment or series of payments).
Concession
The act of conceding.
Discount
To price (a bond or other debt security) at a reduction to its face value, especially in place of a coupon.
Concession
Something, such as a point previously claimed in argument, that is later conceded.
Discount
To disregard or doubt (something) as being exaggerated or untrustworthy
Discount a rumor.
Concession
An acknowledgment or admission.
Discount
To underestimate the significance or effectiveness of; minimize
I made sure in my report not to discount your accomplishments.
Concession
A grant of a tract of land made by a government or other controlling authority in return for stipulated services or a promise that the land will be used for a specific purpose.
Discount
To anticipate and make allowance for; reckon with in advance.
Concession
The privilege of maintaining a subsidiary business within certain premises.
Discount
A reduction from the full or standard amount of a price or value.
Concession
The space allotted for such a business.
Discount
The amount by which the face value of a bond or other debt security exceeds its market price.
Concession
The business itself
There was an ice cream concession in the subway station.
Discount
Offering products or services for sale at low or reduced prices
A discount retailer.
A discount airline.
Concession
A snack, drink, or other food sold at a concession
Bought concessions at halftime.
Discount
Sold or offered for sale at a low or reduced price
Discount merchandise.
Concession
The act of conceding.
Discount
Reduced in quantity or value
Discount airfares.
Concession
An act of conceding, particularly:
Discount
Priced below face value, especially in place of a coupon
A discount bond.
Concession
A compromise: a partial yielding to demands or requests.
Discount
To deduct from an account, debt, charge, and the like.
Merchants sometimes discount five or six per cent for prompt payment of bills.
Concession
Land granted by an authority for some specific purpose, particularly: township
Discount
To lend money upon, deducting the discount or allowance for interest
The banks discount notes and bills of exchange
Concession
A privilege granted by an authority, especially to conduct business on favorable terms within certain conditions and particularly:
Discount
To take into consideration beforehand; to anticipate and form conclusions concerning (an event).
Concession
(rhetoric) An admission of the validity of an opponent's point in order to build an argument upon it or to move on to another of greater importance; an instance of this.
Discount
To leave out of account or regard as unimportant.
They discounted his comments.
They discounted his suggestion.
They discounted his idea.
Concession
(by extension) Any admission of the validity or rightness of a point; an instance of this.
Discount
To lend, or make a practice of lending, money, abating the discount
Concession
An admission of defeat following an election.
Discount
To believe, or act as though one believes, that one's own feelings are more important than the reality of a situation.
Concession
A gift freely given or act freely made as a token of respect or to curry favor.
Discount
A reduction in price.
This store offers discounts on all its wares. That store specializes in discount wares, too.
Concession
A franchise: a business operated as a concession (see above).
Discount
(finance) A deduction made for interest, in advancing money upon, or purchasing, a bill or note not due; payment in advance of interest upon money.
Concession
An item sold within a concession (see above) or from a concessions stand.
Discount
The rate of interest charged in discounting.
Concession
A person eligible for a concession price (see above).
Discount
(figurative) A lack or shortcoming.
Concession
To grant or approve by means of a concession agreement.
Discount
The act of one who believes, or act as though they believe, that their own feelings are more important than the reality of a situation.
Concession
The act of conceding or yielding; usually implying a demand, claim, or request, and thus distinguished from giving, which is voluntary or spontaneous.
By mutual concession the business was adjusted.
Discount
Specializing in selling goods at reduced prices.
If you're looking for cheap clothes, there's a discount clothier around the corner.
Concession
A thing yielded; an acknowledgment or admission; a boon; a grant; esp. a grant by government of a privilege or right to do something; as, a concession to build a canal.
This is therefore a concession, that he doth . . . believe the Scriptures to be sufficiently plain.
When a lover becomes satisfied by small compliances without further pursuits, then expect to find popular assemblies content with small concessions.
Discount
To deduct from an account, debt, charge, and the like; to make an abatement of; as, merchants sometimes discount five or six per cent for prompt payment of bills.
Concession
A contract granting the right to operate a subsidiary business;
He got the beer concession at the ball park
Discount
To lend money upon, deducting the discount or allowance for interest; as, the banks discount notes and bills of exchange.
Discount only unexceptionable paper.
Concession
The act of conceding or yielding
Discount
To take into consideration beforehand; to anticipate and form conclusions concerning (an event).
Concession
A point conceded or yielded;
They won all the concessions they asked for
Discount
To leave out of account; to take no notice of.
Of the three opinions (I discount Brown's).
Discount
To lend, or make a practice of lending, money, abating the discount; as, the discount for sixty or ninety days.
Discount
A counting off or deduction made from a gross sum on any account whatever; an allowance upon an account, debt, demand, price asked, and the like; something taken or deducted.
Discount
A deduction made for interest, in advancing money upon, or purchasing, a bill or note not due; payment in advance of interest upon money.
Discount
The rate of interest charged in discounting.
Discount
The act of reducing the selling price of merchandise
Discount
Interest on an annual basis deducted in advance on a loan
Discount
A refund of some fraction of the amount paid
Discount
An amount or percentage deducted
Discount
Bar from attention or consideration;
She dismissed his advances
Discount
Give a reduction in price on;
I never discount these books-they sell like hot cakes
Common Curiosities
Can discounts be considered a type of concession?
While discounts can be seen as a concession in price, they are generally used in a commercial context to stimulate sales rather than as a compromise in negotiations.
In what situations are concessions made?
Concessions are made in negotiations, disputes, or situations where a compromise is needed to move forward.
How do discounts benefit consumers?
Discounts make purchases more affordable, allowing consumers to save money or buy more for less.
What is the difference between a discount and a sale?
A discount is a reduction in price, while a sale is an event or period during which discounts are offered.
What is a concession?
A concession is a compromise or adjustment made in a dispute or negotiation, often to reach an agreement or maintain a relationship.
How do businesses decide on discounts?
Businesses consider factors like inventory levels, competition, market demand, and sales objectives when setting discounts.
What is a discount?
A discount is a reduction in the price of goods or services offered by a seller to encourage purchases.
How can concessions affect a business relationship?
Concessions can strengthen business relationships by demonstrating flexibility, understanding, and a willingness to compromise.
Why might a seller offer concessions?
A seller might offer concessions to close a deal, resolve a dispute, or maintain a positive relationship with the buyer.
What role do discounts play in marketing?
Discounts serve as an effective marketing tool to attract attention, boost sales, and enhance customer loyalty.
Do discounts affect the perceived value of a product?
Yes, frequent or large discounts can affect the perceived value, potentially leading customers to expect lower prices.
What impact do discounts have on profitability?
Discounts can temporarily reduce profitability on individual sales but may increase overall profitability through higher volume sales or customer acquisition.
Is negotiation required for discounts?
Generally, no. Discounts are usually predetermined and do not require negotiation between the buyer and seller.
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Written by
Maham Liaqat
Co-written by
Urooj ArifUrooj is a skilled content writer at Ask Difference, known for her exceptional ability to simplify complex topics into engaging and informative content. With a passion for research and a flair for clear, concise writing, she consistently delivers articles that resonate with our diverse audience.
