How are Discounts Calculated and Funded?
Business Discounts, Member Discounts, Discount Codes and Loyalty Cards are deducted from the order's subtotal. Discounts are not deducted from service charges or delivery charges. Add-on Items are not included in the subtotal when the discount is calculated, as these items are already discounted.
This means that your outlet is funding these discounts, and the marketplace commission is calculated on the subtotal after the discount has been deducted therefore the value is reduced for a discounted order.
In the future, we will be building other funding options for discounts and you will have the option for your marketplace to fund a discount and the outlet to still receive full payment for the order.
How are Marketplace Commissions Calculated on a Discounted Order?
Commissions to the Marketplace are calculated as follows (these examples do not include payment of the service charge to the marketplace):
-
VAT registered Marketplaces charging 10% commission: 10% of ((Gross subtotal -Ggross discount value) + Gross Restaurant own delivery cost) + 20% VAT
-
Non VAT registered Marketplaces charging 10% commission: 10% of ((Gross subtotal - Gross discount value) + Gross Restaurant own delivery cost)
Example of an Order with a 10% Discount
(These examples do not include payment of the service charge to the marketplace)
|
|
VAT registered Marketplaces charging 10% commission: |
Non VAT registered Marketplaces charging 10% commission: |
|---|---|---|
|
Subtotal |
£36.00 |
£36.00 |
|
Discount value |
-£3.60 |
-£3.60 |
|
Delivery |
£1.00 |
£1.00 |
|
Marketplace Charge |
£0.50 |
£0.50 |
|
Total |
£33.90 |
£33.90 |
|
Commission due to the marketplace |
10% of ((£36.00 - £3.60) + £1.00) + 20% = £4.00 |
10% of ((£36.00 - £3.60) + £1.00) = £3.34 |
Example of an Order with a £5 discount
(these examples do not include payment of the service charge to the marketplace)
|
|
VAT registered Marketplaces charging 10% commission: |
Non VAT registered Marketplaces charging 10% commission: |
|---|---|---|
|
Subtotal |
£36.00 |
£36.00 |
|
Discount value |
-£5.00 |
-£5.00 |
|
Delivery |
£1.00 |
£1.00 |
|
Marketplace Charge |
£0.50 |
£0.50 |
|
Total |
£32.50 |
£32.50 |
|
Commission due to the marketplace |
10% of ((£36.00 - £5.00) + £1.00) + 20% = £3.84 |
10% of ((£36.00 - £5.00) + £1.00) = £3.20 |
Who funds the discounts?
Each of the discounts is funded by the business. How the discount is offered to a customer depends on the discount, see below:
Business Discounts
How to locate Business Discount: Redbox Management → Businesses → Select a Business → Discounts
This discount is available as a percentage or a fixed amount discount. This discount can be offered by a business across all of its outlets, or to a specific outlet within the business; it is automatically applied and is available to all customers.
Member Discounts
How to locate Member Discount: Redbox Management → Businesses → Select a Business → Members
This discount is only available as a percentage discount. This discount will be offered by a business across all of their outlets, and automatically applied only to the individual customer it has been offered to.
Discount Codes
How to locate Discount Codes: Redbox Management → Marketplaces → Select a Marketplace → Discount Codes
All customers can apply this discount at check out, this can be applied to all outlets available on the marketplace, or specific outlets on the marketplace. Marketplaces funding this discount will need to track the Discount Code usage and reimburse the businesses accordingly.
To track the usage of the Discount Code, navigate to the Discount Codes page (instructions above):
-
Select the required Discount Code
-
Select the Usage Report. This usage report can be downloaded as a .CSV file.
Loyalty Cards
How to locate Loyalty Cards: Redbox Management → Loyalty → Select a Marketplace
The loyalty card discount is automatically applied at checkout once the customer has earned all the required stamps. Each stamp accumulates value based on either a percentage or fixed amount, as configured when the card was set up. Once redeemed, the discount is applied as a fixed value, reflecting the total the customer has accumulated. The discount can be offered by the marketplace, meaning the card can be used at any outlet on the marketplace, or by specific outlet(s), meaning the customer can only earn stamps and redeem the discount at those specified outlet(s).