The retail discount percentage expresses the reduction as a share of a defined original price: price reduction divided by reference price, multiplied by 100. Both prices need the same product and tax basis. This is not the financial discount rate used to value future cash flows.
Advertised consumer reductions also require a lawful comparison basis.[1] Correct arithmetic does not validate an artificially inflated reference price. Check the remaining contribution too: a discount percentage and a profit margin use different denominators.
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Compiled with AI assistance using public sources. General explanation, not individual legal or tax advice. Describing a concept does not mean Zoloo offers it as a feature.