An employee discount may be offered as an incentive to work for a company. Usually the employee discount is available to those working for a company selling commercial goods. Sometimes, however, those working in the service industry may receive a discount on services.
The amount of an employee discount is highly variable. Standard discounts can range for 10-30% of regularly priced merchandise or services. Discounts may not apply to sale merchandise, or services at sale prices.
In retail clothing stores, offering a discount to employees is often a smart business move for employers. Some stores may require employees to wear clothing purchased at the store, and these store usually offer a generous discount to make this affordable. Others merely rely on the discount to place temptation in front of the employee at all times. Such a discount ensures that some of the money earned will go directly back to the store.
In some cases, one may receive greater discounts if one has a higher-level position. At an average retail store, for example, a sales associate might receive a 10% discount, a supervisor 20%, and a manager 30-40%. Owners in consumer products industries don’t usually require a discount, since they can order products at cost.
Commercial goods industries like auto lots, may offer a significant discount to encourage employees to drive newer cars. Recently, companies like General Motors have had sales offering the same discount to regular consumers, since sales of larger cars have been sluggish.
In a sense, offering the employee discount to the average consumer tends to devalue the discount for employee. It also usually results in lower commissions for employees. However, many find that some commission is better than none if cars won’t sell at regular prices.
Sometimes an employee discount may extend to other family members. It depends very much on the store policy. Some generously extend the discount to even distant family members, while others only offer the discount to the employee and perhaps a spouse, or children.
In some cases, working for one branch of a company can offer one an employee discount at a variety of stores. Many small retail companies are owned by much larger companies. This may result in discounting at any store owned by the company.