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-   -   Trade discounts and net price factors (https://www.askmehelpdesk.com/showthread.php?t=406419)

  • Oct 15, 2009, 05:23 PM
    heatherstclair
    Trade discounts and net price factors
    How do trade discounts and net price factore complement each other?
  • Oct 15, 2009, 07:08 PM
    Just Looking
    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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