Business Terms and Jargon Explained

What is Trade Margin

A trade margin is the difference between the actual or imputed price charged on a good purchased for resale without further processing and the price that would have to be paid by the distributor to replace the good at the time it is sold. These margins can be earned by businesses in any industry but are mainly earned by the distribution industry.

Crown Copyright. Material taken from National Statistics website: www.statistics.gov.uk. Reproduced under the terms and conditions of the Click-Use Licence.

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Term created / updated 2007-01-19 16:15:00

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