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 ?
The cigarette minimum price laws in some states also expressly allow or prohibit trade discounts (i.
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.
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.
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.
Best Choice offers trade discounts on all cars, no-hassle service contracts for new and used cars and disposal of "trade-ins.
We have not included cash discounts and trade discounts.
These stores will provide the opportunity for our licensed customers to take full-advantage of all trade discounts without having to worry about any minimums or pre-arranged delivery schedules.
Contractor must submit their current price list reflecting their usual and customary fees and indicate trade discounts offered in the spaces provided.