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 ?
BEIRUT: Lebanon may lose European Union trade preferences after an impending adjustment of the European Commission's trading scheme, which would see nearly 70 middle-to-high income developing countries lose EU trade discounts.
The cigarette minimum price laws in some states also expressly allow or prohibit trade discounts (i.e., reductions in price) from cigarette manufacturers to wholesalers or retailers in calculating the minimum retail price to consumers.
A discount that is always allowed regardless of time of payment is a trade discount. The IRS treats the purchaser as paying a net price after the trade discount (Revenue Ruling 84-41).
Amounts allocable to these agreements will be treated as advance trade discounts under Revenue Procedure 2007-53.
This paper adds to current research by examining the impact of manufacturer and retailer power on retailer response to trade discounts using data collected from manufacturers and retailers over a full year marketing cycle.
However, determining whether it is beneficial for a business to utilize its bank revolving line of credit to take advantage of trade discounts is a little trickier.
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.
The OIG said it believed that there was a connection between the discount and referrals of other federal healthcare program business, and stated, "Both parties have obvious motives for agreeing to trade discounts on PPS business for referrals of non-PPS business: the SNFs to minimize risk of losses under the PPS system and Ambulance Company X to secure business in a highly competitive market." Essentially, OIG found that receiving too large a discount on PPS services in exchange for referring the vendor other non-PPS business that did not receive the same discount was illegal.
Best Choice offers trade discounts on all cars, no-hassle service contracts for new and used cars and disposal of "trade-ins." Competitive finance is available including personal contract purchase.
We have not included cash discounts and trade discounts. We will only mention the acceptance of post-dated checks as extended cash terms.
Trade discounts must be reduced to a single percentage whole number.