Understanding Discount Types

This page explains the discount types you may select when completing the Supplier Onboarding Form. Each definition is written to avoid ambiguity and to help you choose the option that best reflects your organisation’s standard commercial practice.

Please select the discount type(s) that apply to your business. If none of these discount types are offered, choose None.

Volume Discounts

What this means:
You reduce prices when the buyer orders larger quantities or reaches certain spend levels.

Examples:

Lower unit prices for bulk orders

Discounts applied when annual spend reaches a threshold

When to select this option:
Choose this if you offer price reductions based on order size or cumulative spend.

Early Payment Discounts

What this means:
You offer a price reduction when the buyer pays earlier than your standard payment terms.

Example:
A supplier may offer a 2% discount if the invoice is paid within 10 days.

When to select this option:
Choose this if you provide a fixed discount for early settlement of invoices.

Dynamic Discounting

What this means:
You offer a flexible discount that changes depending on how early the buyer pays. The earlier the payment, the larger the discount.

Key point:
There is no fixed percentage — the discount varies based on payment timing.

When to select this option:
Choose this if your discounts are calculated dynamically rather than using a fixed early‑payment rule.

Contractual / Negotiated Discounts

What this means:
You provide a discount that has been formally agreed in a contract or commercial agreement.

Key point:
This discount does not depend on payment timing or volume — it is fixed and pre‑negotiated.

When to select this option: Choose this if your pricing includes a contractually agreed discount.

Rebates

What this means: You return a portion of spend to the buyer after certain conditions are met. Rebates are paid retrospectively (e.g., quarterly or annually).

Examples:

A percentage rebate based on total annual spend

A fixed rebate for meeting volume targets

When to select this option: Choose this if you pay rebates after the buyer reaches agreed thresholds.

Consignment Terms

What this means:
You supply goods that remain your property until the buyer uses or sells them. The buyer only pays once the goods are consumed.

Key point:
This is not a discount but a commercial arrangement that reduces the buyer’s upfront cost.

When to select this option: Choose this if you operate consignment stock arrangements.

Promotional or Seasonal Discounts

What this means:
You offer temporary discounts linked to promotions, seasonal cycles, or stock clearance.

Examples:

End‑of‑season reductions

Short‑term promotional pricing

Discounts during peak sales periods

When to select this option: Choose this if you provide time‑limited discounts on specific products or ranges.

Trade Discounts for Architects / Interior Designers

What this means:
A trade discount offered specifically to architects, interior designers, or design professionals as part of your commercial policy. These discounts are typically provided to support project specification, encourage repeat business, and recognise the role these professionals play in recommending products to their clients.

Key characteristics:

Usually a fixed percentage discount applied to qualifying customers

May require proof of professional status (e.g., business registration, trade account)

Often used to support design‑led industries such as furniture, lighting, finishes, and materials

Can apply to all products or only selected ranges

Not dependent on order volume, payment timing, or annual spend

Examples:

A standard 10% trade discount for registered interior designers

A fixed discount for architects specifying products for client projects

Preferential pricing for design studios purchasing for multiple projects

When to select this option:
Choose this if your organisation offers a dedicated trade discount programme for architects, interior designers, or design professionals, separate from general customer pricing.

None

What this means: You do not offer any of the discount types listed above.

When to select this option:
Choose this if your organisation does not provide discounts or rebates as part of standard trading terms.