How do businesses and companies gain money even when they are giving discounts?

How do companies and businesses gain money even when they give discounts. So, for example, if they were to give 50% discount on a product -- are they still making money or losing? If they are making, how do they do it even when they are giving discounts? If they are losing, why would they want to lose profit?





Thanks for answering.

How do businesses and companies gain money even when they are giving discounts?
The markup on most merchandise in most retail outlets is almost 100%. There are occasional instances where this is not applicable. However, even if the markup is only 50%, the profit margin will be 25%. Discounts are usually offered just to attract customers into the store, where they will, hopefully, buy other products that are not discounted.