The name of this technique is ‘rebate’. In order to clear the excess stock products, it is used in the market. When the products are offered at special, reduced prices, it is called sale at rebate.
Two other techniques are:
(i) Full finance @ 0% It refers to the offer of sale in return of payment in easy instalments without any interest charges thereon. This is usually available on vehicles, electronics and consumer durables.
(ii) Sampling Many business firms distribute free samples of their products to selected consumers in order to make the product popular.
This method is generally used for products of daily use, e.g. soaps, detergents, toothpaste, cosmetics, tea, etc. It is an expensive method, but is useful, particularly for introducing new products in the market.