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But what's the difference between them and who uses them? There are three different types of programs - merchant discount, employee discount and employee purchase programs. All three provide a means for employees to obtain items and services of their choosing. There is little or no direct cost to employers and very minimal, if any, administrative costs for these programs. Manufacturers and service providers frequently provide discounts for employees of large companies and association members.
The process is simple. When the employee or member decides to purchase this item or service, they simply identify their employer at the point of purchase and receive the specified discount. Types of merchant discounts include computers and electronics; hotels, resorts and amusement parks; rental cars; home and auto insurance; and mobile phone service.
Most merchant discounts are from large, national manufacturers or service providers with recognizable brands. However, many government organizations and colleges obtain discounts from local sources as well, including apartment rental, restaurants and local retail stores.
Employee Discount Programs provide workers access to a wide variety of consumer products and services at a discount. Either employers can contract directly with vendors and merchants to obtain discounts and group rates for employees, or they can engage the services of an employee discount program online platform. Several companies provide online platforms whereby employees simply log in to the platform's portal and to access discounts on items and services from a multitude of companies.
What is an employee purchasing program? Types of employee discount and purchasing programs There are three different types of programs available to help employees obtain items and services, including: Merchant discounts: Manufacturers often offer discounts for employees who work in large organizations or are members of an association. To access the benefits of these programs, employees only need to identify their employer at the point of purchase and receive a discount for that company.
These benefits are often available for computers and electronics, cell phone service providers, home and car insurance companies and hotels. Employee discount programs: Some organizations offer a discount program to give their employees access to discounted products and services.
To provide this, the employer can either work with the vendor directly to get discounts for products and services or they can use an online platform. Many companies offer online platforms, where discounts have already been negotiated. Employees only need to log into the portal to access products and services from a wide variety of companies.
Employee purchase programs: With this program, employees can purchase products and services on an interest-free basis through payroll deduction. This type of purchasing program gives employees access to thousands of products, vacation packages and services.
Some of the common purchases that employees make through an employee purchase program include computers, furniture, appliances, sporting equipment, automotive services, travel, kids products and educational services, including college courses and test-prep services.
Why do employees use these programs? Train employees well In order to ensure your employees are getting the most out of their benefits, train them on how the program works.
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