trade discount

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Trade Discount

The amount by which a company reduces its price per unit when selling units (usually in large quantities) to a reseller. Trade discounts exist to encourage large orders, which, while they may reduce profit margin, increase revenue and therefore raw profit. They also tend to increase the reseller's profit margin, which may encourage repeat business with the supplier.

trade discount

see QUANTITY DISCOUNT.

trade discount

see DISCOUNT.
References in periodicals archive ?
Trade promotions, including temporary price reductions or trade discounts, are the principal way manufacturers have of persuading retailers to reduce retail prices and further promote the manufacturers' brands in their stores.
He adds that the company has filed patents on Avolent's new capability for monitoring trade discounts, append to an electronic document and have ability to dynamically change them.
Grace until 1993 provided full trade discounts on the same books to retailers.
Historically, the IRS has suggested that taxpayers should make the allocation of trade discounts (and cash discounts when so elected) on an item-by-item basis (see Rev.
THE DEFERRAL OF TRADE DISCOUNTS BY RETAILERS has caused the INS to closely police whether allowances contingent on services performed are really trade discounts.
For details on trade discounts, online ordering and a free catalog, contact:
By receiving invoices electronically, cash managers and treasurers obtain a real-time picture of their liabilities and can use this critical information to make better-informed decisions by finding the right balance between borrowing to cover payables and paying early to take advantage of trade discounts.
With the understanding that small businesses may need an immediate source of cash for working capital, seasonal purchases, new inventory, trade discounts, or carrying accounts receivable, Union Bank is pleased to introduce a flexible business line of credit that offers clients enhanced choice, convenience and control," said Union Bank Small Business Banking Executive Joseph Benoit.
The ceramic and glass tiles company is also currently promoting its new policy of Exclusive Trade Discounts.
The Ninth Circuit held that advance trade discounts were not income when received by a taxpayer because the taxpayer had an obligation to repay the discounts and therefore did not have an accession to wealth.
Horizon Organic is planning strong marketing programs to support the launch of the pudding including trade discounts and in-store sampling.