Page 25 - LESSON 2: DISCOUNTS AND COMMISSIONS

LESSON 2: DISCOUNTS AND COMMISSIONS
Introduction

Many consumers can get discounts if they buy in bulk or big numbers. The discounts that
they can get may range from 5% to 20% or even higher. In our illustration, we notice that if the

student buys only one book, very often he would not get any discount. But if he buys books not M2_L2

only for himself but also for his classmates, the seller would only be too willing to sell at a discount.

Businessmen, too, can make money by buying goods at a lower price. They can get
discounts from manufacturers because they buy in bulk. They, in turn, would sell these goods at a

higher price and, thus, gain profit. Department stores, book stores, drug stores, flower shops,

supermarkets, and sari-sari stores are some examples of business establishment which buy and sell
goods and make profits in the process.

The normal pattern in buying and selling goods can be given in the following illustration:

LESSON 2: DISCOUNTS AND COMMISSIONS 3 | P a g e