How do trade discounts and net price factore complement each other?
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How do trade discounts and net price factore complement each other?
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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