Single Trade Discount: Finding Net and List Price Examples
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• A trade discount is a reduction in the listed price of a product or service offered by a seller to a buyer within a specific business-to-business transaction (e.g. manufacturer to distributor, wholesaler to retailer, etc.)
• Unlike retail discounts that are commonly offered to end consumers, trade discounts are designed to facilitate and incentivize bulk purchases, foster long-term business relationships, and streamline transactions within the supply chain.
Q1. Skate World sells a pair of skates for $55.60 below the suggested retail price. Skate World claims that this represents a 35.1% discount. What is the suggested retail price (or list price)?
Formulas:
D = Ld
N = L(1−d)
D = discount
L = list price
d = rate of discount
N = net price
Q2. A store advertises a discount of $48.95 on a pair of shoes. If the discount is 25%, what price were the shoes sold for?
Q3. A home theatre system listed at $1136 has a net price of $760. What is the rate of discount?