Choosing between Discounts and Comps

[Around]

This may help you figure out the difference between discounts and comps (compensations).

Discounts

Can reduce some to all of the cost, either by set $ amount, or %.

Applies to all items. (Unless setting discount rules)

Can be automatically applied with rules.
Can be set to apply tax to original cost for things like manufacturer discounts and instant rebates.  Important in some state sales tax laws.

Best used for entire order discounts, or logic based discounts (BOGO/B2G1, etc).

Comps

Can only remove the full amount.

Applies to a single item.

Always manually applied.

Item is no longer subject to taxation.

Best used for a free item redemption or mistake with item.

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Notes:

Warning using % discounts:

Unless specified by rules, % discounts named will not care what items are in the sale, all items will be discounted.  This leads to unintended discounts when your staff may select "End of Season - 50% Off", only to find both the items that should be discounted, and the ones that shouldn't all receive that discount.
This is especially dangerous for the 100% off.  I see some instances where "Free Drink" is 100% off, but as soon as you hit that as the discount, anything (drink/food/new car) on the ticket is now free.

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Coupons/Offers:

Free Item Offer

Comp the item.

If you try to use discount you have to make them do a separate transaction because whole bill will be discounted, or if you use a category/item discount, if they order 2, both will get discount.

You could try to use a "variable $ discount" and you won't track why that discount was applied.

Buy One Get One Offer

Create an automatic Discount

In Discount Rules pick Quantity.

This allows for no mistakes, it automatically applies to equal or lower value item.

$ Off Your Next Visit

Use a $ Discount

If you will fluctuate the amount ($1 off, $2 off, etc) make a Variable $ Discount by leaving the amount blank.  Name it something to be tracked on reporting.

Open an account and get % off!

Use a % Discount

If you will fluctuate the amount (%20 off, %30 off, etc) make a Variable % Discount by leaving the amount blank.  Name it something to be tracked on reporting.

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Complaints/Mistakes:

This item is too hot/cold/tasty/etc!

Comp the item.

This will affect the item in dispute only.

Having a reason in comps (Items -> Comps) is a way to track, so have one called "Customer Complaint" or such.

I ordered an X and got a Y!

Check transactions and see if it was an order error or they are trying to trick you for a freebee.  Respond based on company policy. 

Comp the item.

This will affect the item in dispute only.

Have a comp called "Entry Error" or such.

This order took way too long!

Discount the bill

Either by % of by a set $ amount, based on company policy.

The discount should be named for tracking purposes.

[BernadetteA]

Thanks for posting, @Around 🙂 I'm sure other sellers will find this post helpful. 

[prez]

Hello, so the issue we have is when our bartenders comp an order we are charging ourselves full price instead of the cost. ex. a drink cost .92 to make but we comp it at $7 which is the retail amount. How can we get this to properly reflect the cost and not the retail price in reporting?

[Kassi_]

Welcome to the Community, @prez -

I wanted to make sure we are on the right page, you want to comp the unit price of the item instead of the customer's price. Is that correct?

Unfortunately, it would remove the item from the Customer's bill -so this means it would be removing it from the price they would pay. 

What you're looking for would be a Feature Request for our Product Team. I'd be happy to pass it their way.