Off-invoice allowance
Off-invoice allowance is a discount or rebate provided to a customer directly on their invoice. It is a common practice in sales and marketing to incentivize customers to purchase more products or services. The allowance is deducted from the total amount due on the invoice, resulting in a lower final price for the customer.
For example, a supplier may offer a 10% off-invoice allowance on a bulk order of products. If the total amount due on the invoice is $1000, the customer would receive a $100 discount, only paying $900 in total.
Off-invoice allowances can be used strategically to increase sales, reward loyal customers, or clear out excess inventory. However, it is important for businesses to carefully plan and manage these allowances to ensure profitability and avoid misuse.
Overall, off-invoice allowances can be a powerful tool in the sales and marketing arsenal, providing benefits for both businesses and customers alike.
Examples of off-invoice allowances:
- 10% discount on orders over $500
- $50 rebate for every 5 products purchased
- Free shipping on orders over $100
For more information on off-invoice allowances, you can visit Wikipedia.