Percentage discount is a crucial concept in the marketing and economics world, allowing businesses to attract customers and offer incentives. It is the amount of reduction in price offered on a product or service, usually expressed as a percentage of the original price. For instance, a 50% discount means the customer pays half the original price.
Understanding how to calculate percentage discount is essential for businesses to accurately determine the discounted price for customers and calculate their profit margins. Moreover, it plays a vital role in tracking discounts and sales performance over time. Historically, percentage discounts have been used as a marketing strategy since the early days of trade and commerce.