Business terms and jargon explained. Your business dictionary

What is Trade discount

When a business sells one product to a customer this will be at the normal price. If however another business wishes to sell their products or services the supplier will normally give the trade buyer a trade discount based on the quantity they buy. The bigger the purchase the bigger the discount. Trade discounts can be given to consumers when they purchases in bulk. It is an incentive for the buyer to buy more and make bigger profits.

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Term created / updated 2009-04-10 22:15:29

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