traDe and caSh discOunts..

What is a Trade Discount?

A "trade discount" is also known as a distributor discount and is the percentage off your retail price that you offer to the publishing trade for distributing your book. The "publishing trade" consists of wholesalers, distributors, and retailers. Everyone who handles your book takes a piece of the trade discount.

Obviously, the larger the trade discount, the more money there is to split up among the parties involved. Standard trade discounts range from 50% - 70%.

Discounts and Allowances are reductions to the selling price of goods or services. They can be applied anywhere in the distribution channel between the manufacturer, middlemen (such as distributors, wholesalers, or retailers), and retail customer. Typically, they are used to promote sales, reduce inventory, and reward or encourage behaviors that benefit the issuer of the discount or allowance.

Trade Discount= List price-net price
Amount Trade Discount= List pricex Trade Discount rate

**3 bears..just manage bought it in lovely lace, klcc
The list price of a bear is RM29.90. A trade discount of 20% is offered.

NET PRICE
LP=RM29.90
Td=20%x29.90
=RM5.98
Net Price= LP-Td
=RM 29.90-5.98
=RM23.92(3bears)
=RM71.76

AN ALTERNATIVE METHOD, FORMULA FOR CALCULATING nEt PricE.
NP=L(1-r)
NP=net price
LP=List Price
r%=Trade discount
From net price= list price-trade discount
NP=L-Lr
NP=L(1-r)
NP=29.9(1-20%)
=RM23.92(3)
=RM71.76