trade discount

  

Definition

An amount or rate by which the catalog, list, or retail price of an item is reduced when sold to a reseller. The trade discount reflects the reseller's profit margin and usually varies directly with the quantity of the item purchased.

Use trade discount in a sentence

  • We were offered a trade discount from the other company and we took it without question because we loved getting discounts on things.

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  • Acme Books gives a trade discount of 15% to all local retailers, but you can get them up to 20% if you plan on hosting a book signing with one of their authors.

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  • You may try and find a trade discount when you plan on buying a large quantity of a product or a resource.

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