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Trade discounts and net price factors

Asked Oct 15, 2009, 05:23 PM — 1 Answer
How do trade discounts and net price factore complement each other?

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Oct 15, 2009, 07:08 PM
A trade discount is a discount on the list price granted by a manufacturer or wholesaler to buyers in the same trade.

The net price is the price a company actually pays for a product after the discount is deducted.

The net price factor is the net price written in percentage form.

List price = 100%

If the trade discount is 40%, the complement of the trade discount is 60% (100% - 40%). 60% is the net price factor in this example.

I believe this is what you are asking. The trade discount % and the net price factor will always equal 100%.
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