Chapter 6, Problem 1TP

Conduct research on a real-world retailer’s trade discounts and policies, and discuss the following questions.

• Which company did you choose? What do they sell?

• What is a trade discount?

• What products are subject to a trade discount?

• Describe the discount terms/program in detail. Give examples.

• Are there any restrictions?

• What incentive does this company have to give a trade discount?

• How does this discount benefit the buyer?

• If the buyer had to choose between receiving a trade discount or regular cash purchase discount, which would benefit them more? Why?