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Is giving a discount based on sales target permissible in a business?

Answered as per Hanafi Fiqh by Jamia Binoria
We sell sanitary items from our factory to shop keepers and give them a sale target. At the end of the year, a discount is given to whoever fulfills the target. The bigger the target, the more discount is given at the end of the year, and the smaller the target the lesser the discount. Discount will not be given to whoever fails to fulfill the target. Is this permissible?

الجواب حامدا و مصلیا

In order to motivate shop keepers to purchase one’s product, it is permissible as per Shari’ah to give them sale targets, as well as discounts upon the fulfillment of the sale targets.

This Q&A was indexed from the official english fatwa portal of Jamia Binoria. It is an Islamic educational institute in Karachi, Pakistan.

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