trade discount
/ˈtreɪd ˈdɪskaʊnt/
Meaning
A trade discount is a reduction in the catalog or list price of a product, offered by a manufacturer or wholesaler to a distributor or retailer. It is typically given based on high-volume purchases or to maintain a strong business partnership, and is not available to regular consumers.
Examples
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As a registered distributor, we are entitled to a thirty percent trade discount on all bulk orders.
As a registered distributor, we are entitled to a thirty percent trade discount on all bulk orders.
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The manufacturer offered us a higher trade discount if we agreed to buy exclusively from them.
The manufacturer offered us a higher trade discount if we agreed to buy exclusively from them.
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Our profit margins improved significantly after negotiating a better trade discount with our main supplier.
Our profit margins improved significantly after negotiating a better trade discount with our main supplier.
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The catalog prices are for retail customers, but businesses can log in to see their trade discount.
The catalog prices are for retail customers, but businesses can log in to see their trade discount.
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We cannot offer a further trade discount on this item because our margins are already very tight.
We cannot offer a further trade discount on this item because our margins are already very tight.
Common Mistakes
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✗ We got a commercial discount from our wholesale supplier.
✓ We got a trade discount from our wholesale supplier.
While 'commercial discount' makes sense logically, 'trade discount' is the standard accounting and business term for B2B price reductions.
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✗ The company gave us a ten percent trade discount price.
✓ The company gave us a ten percent trade discount.
Do not add the word 'price' after 'trade discount'. The discount itself represents the reduction, not the final price.
Related Expressions
Practice
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Wholesalers often offer a ___ to retailers who buy goods for resale.
💡 A B2B price reduction off the manufacturer's suggested retail price.
Show answer
trade discount
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Our purchase price is lower than the retail price thanks to our negotiated ___.
💡 The discount given to members of the same trade or distribution channel.
Show answer
trade discount