Price rebate in the business relations and the consequences on the company outcome

• Author: Anton, C. - Costache, A.
• Position: Dept. of Economic Sciences and Business Administration, Transilvania University of Brasov - MA Student, Accounting Policies, Audit and Management Control, Transilvania University of Brasov
• Pages: 131-138

Bulletin of the Transilvania University of Braşov • Vol. 5 (54) •No. 2 - 2012

Series V: Economic Sciences

PRICE REBATE IN

THE BUSINESS RELATIONS AND

THE CONSEQUENCES ON

THE COMPANY OUTCOME

C. ANTON1 A. COSTACHE2

Abstract: The development of the company’s activity in a competition

economic environment, featured by continuous dynamics generates more and

more complex problems and for solving these problems, the manager

searches solutions meant to lead to the attainment of the set goals. Thus, the

most important strategy to attain higher financial performances is the

efficient management of the relation with the clients. Moreover, studies and

analyses are required concerning the volume of the commercial transactions

with strategic partners, developing a price rebate policy meant to make

clients loyal. This paper aims at identifying the most appropriate

communication and collaboration methods between the client and the

company and at setting the type of granted commercial facilities, so that the

outcome of the carried out activity attains the proposed level.

Key words: commercial discounts, financial discounts, profit and loss,

clients, relationship with the clients.

1 Dept. of Economic Sciences and Business Administration, Transilvania University of Braşov.

2 MA Student, Accounting Policies, Audit and Management Control, Transilvania University of Braşov.

1. Introduction

The financial outcome of the entity is

mainly influenced by the relationships with

the clients. The price rebates in the

relations with the commercial partners

represents an approach of the entities who

aim at orientating towards the client.

According to the opinion of the specialists,

in dealing with the clients there are

underlined the following main subjects [1]:

 managing the clients’ databases;

 clients analysis (segmentation according

to the profitability and to the strategic

rank, segmentation according to the

profitability and to the loyalty);

 purchase exclusivity (clients loyalty) –

developing clients loyalty.

In this paper, we aimed at developing a

loyalty strategy of the clients, taking into

account the provided commercial facilities,

as price rebates, without affecting the

performance target. Within a concurrent

market environment, the price rebates,

which may be granted by the providers to

the clients, quantify among others the trust

between the two partners, the business

volume, and the quality of the assets. The

accounting activity practice operates two

rebates categories:

 commercial rebates, which directly

influence the net amount of an invoice;

 financial rebates, referred to as discount