Trade Discount

trade discount: The discount from the cover or list price that a publisher gives the bookseller. It is usually proportional to the number of books ordered (the larger the order, the greater the discount), and typically varies between 40% and 50%.

Essentially the difference between the trade discounted price paid by the reseller and the price the reseller charges its customer will be the reseller's profit.

a price allowance given to a firm performing some part of the marketing function for other members of the channel of distribution, also called trade discount
functional organization ...

Functional Discount - a price allowance given to a firm performing some part of the marketing function for other members of the channel of distribution; also called Trade Discount.

Discount - a reduction off the list price offered by a producer to a buyer; five types of discounts are common: trade, quantity, cash, seasonal and allowances. See Allowances; Cash Discount; Quantity Discount; Seasonal Discount; Trade Discount.

Trade Discount an allowance or price reduction in payment for a channel member's participation in the distribution network; also called a Functional Discount. See Discount.

See also: Product, Function, Price, Offer, Market