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Absolute Discount
Definition
A fixed dollar reduction applied to a product’s regular or list price, expressed as a specific currency amount rather than a percentage. Absolute discount reflects the exact price concession offered during a promotion.
How It's Calculated
Regular Price − Promotional Price
Example
If a packaged food brand regularly priced at $4.99 is promoted in-store at $3.99, the absolute discount is $1.00 per unit, regardless of the implied percentage discount.
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