Trade Discount
/ˈtreɪd ˈdɪskaʊnt/
Definitions
- (n.) A reduction in the list price of goods or services offered by a seller to a buyer, usually in the course of business to encourage purchase or reward volume.
The wholesaler granted a trade discount to retailers on bulk orders.
Forms
- trade discounts
Related terms
See also
Commentary
Trade discounts are typically not recorded separately in accounts but deducted directly from the invoice price; distinguish from cash discounts which relate to payment terms.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.