Editing Discounts and allowances (section)

== Dealing with trade ==

=== Bargaining ===
{{Main|Bargaining}}
[[Bargaining]] is where the seller and the buyer negotiate a price below the original selling price.

=== Trade discount{{anchor|Trade discount|Functional discount}} ===
Trade discounts, also called functional discounts, are payments to distribution channel members for performing some function. Examples of these functions are warehousing and shelf stocking. Trade discounts are often combined to include a series of functions, for example 20/12/5 could indicate a 20% discount for warehousing the product, an additional 12% discount for shipping the product, and an additional 5% discount for keeping the shelves stocked. Trade discounts are most frequent in industries where retailers hold the majority of the power in the distribution channel (referred to as channel captains).

Trade discounts are given to try to increase the volume of sales being made by the supplier.

The discount described as trade rate discount is sometimes called "trade discount".
Trade discount is the discount allowed on retail price of a product or something. 
for e.g. Retail price of a cream is 25 and trade discount is 2% on 25.

=== Trade rate discount {{anchor|Trade rate discount}} ===
A trade rate discount, sometimes also called "trade discount", is offered by a seller to a buyer for purposes of trade or reselling, rather than to an [[end user]]. For example, a pharmacist might offer a discount for over-the-counter drugs to physicians who are purchasing them for dispensing to the physicians' own patients.<ref>{{cite web | url =http://www.allbusiness.com/glossaries/trade-rate/4945920-1.html | title =Business glossary | work =All Business |access-date=2009-02-07}}</ref> A seller supplying both trade or resellers, and the general public will have a general list price for anybody, and will offer a trade discount to bona-fide trade customers.