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There are many purposes for discounting, including to increase short-term sales, to move out-of-date stock, to reward valuable customers, to encourage distribution channel members to perform a function, or to otherwise reward behaviors that benefit the discount issuer.
Some discounts and allowances are forms of sales promotion.
An example of X-Dating would be: Bargaining is where the seller and the buyer negotiate a price below the original asking price.
Trade discount is the discount allowed on retail price of a product or something. Retail price of a cream is 25 and trade discount is 2% on 25.These discounts are intended to speed payment and thereby provide cash flow to the firm. Some retailers (particularly small retailers with low margins) offer discounts to customers paying with cash, to avoid paying fees on credit card transactions.