Employee discounts are a common incentive for those who work for companies that sell commercial goods or services. Discounts can range from 10 to 30%, and sometimes extend to family members. Higher-level positions may receive larger discounts. Some companies offer discounts on cars to encourage employees to drive new models. However, offering the same discount to regular consumers can devalue the employee discount and result in lower commissions for employees.
An employee discount can be offered as an incentive to work for a company. Usually the employee discount is available to those who work for a company that sells commercial goods. Sometimes, however, those working in the service industry can receive a discount on services.
The amount of an employee discount varies widely. Standard discounts can range from 10 to 30% on regularly priced goods or services. Discounts cannot be applied to sale merchandise or services at sale prices.
In retail clothing stores, offering a discount to employees is often a smart move for employers. Some stores may require employees to wear clothing purchased at the store and these stores usually offer a generous discount to make it affordable. Others simply rely on the discount to put temptation in front of the employee at all times. This discount guarantees that part of the money earned will go directly to the store.
In some cases, you may receive larger discounts if you have a higher level position. In an average retail store, for example, a sales associate might get a 10% discount, a supervisor 20%, and a manager 30-40%. Owners of consumer product industries usually do not require a discount, since they can order products at cost.
Commercial goods industries like auto lots can offer a significant discount to encourage employees to drive new cars. Recently, companies like General Motors have seen sales offering the same discount to regular consumers, as sales of larger autos have been slow.
In a sense, offering the employee discount to the average consumer tends to devalue the employee discount. It also usually results in lower commissions for employees. However, many feel that some commissions are better than none if the cars don’t sell at regular prices.
Sometimes an employee discount may extend to other family members. It really depends on the shop policy. Some generously extend the discount to distant family members as well, while others only offer the discount to the employee and perhaps a spouse or children.
In some cases, working for a branch of a company may offer a discount to employees at a variety of stores. Many small retail businesses are owned by much larger corporations. This may result in discounts at any company-owned store.
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