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- DictionaryTrade dis·count/ˌtrād ˈdisˌkount/
noun
- 1. a discount on the retail price of something allowed or agreed between traders or to a retailer by a wholesaler.
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- A trade discount is a reduction in the list price of a product or service offered to a customer by a supplier. It differs from other forms of discounts such as cash discounts, quantity discounts, and promotional discounts because it is negotiated between the supplier and the customer.
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Mar 29, 2023 · A trade discount is a reduction in the list price of a product or service offered to a customer by a supplier. Trade discounts are used to incentivize customers to buy in bulk, purchase products during off-peak periods, or take advantage of other favorable conditions.
Trade discounts are more than just financial incentives; they are strategic tools that can significantly influence the dynamics of the supply chain. By offering trade discounts, suppliers can foster stronger relationships with their buyers, encouraging loyalty and repeat business.
Mar 1, 2023 · A trade discount is a reduction in the list price of goods or services a seller offers its customers. The discount is based on the quantity of goods or services purchased, the frequency of purchases, or any other factors that the seller considers.
Trade discount, also known as functional discount, is a reduction in catalogue price granted by manufacturers and wholesalers to their resellers based on order volume and status, as a custom of the trade, or to reward other members of their distribution channels for performing different functions.
Aug 25, 2023 · A trade discount is a routine reduction from the regular, established price of a product. The use of trade discounts allows a company to vary the final price based on each customer’s volume or status. A seller gives a cash discount on the basis of his or her payment plans, and usually, it is the same for all buyers.
A trade discount is a reduction in the listed price of a product or service, offered by the seller to the buyer. It is commonly used in business-to-business (B2B) transactions as an incentive for buyers to purchase in bulk or to encourage customers to purchase more frequently.
A reduction granted by a supplier of goods/services on list or catalogue price is called a trade discount. This is done due to business consideration such as trade practices, large quantity orders, etc.
