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For examples “2/10 net 30,” this means although payment is due within 30 days, the buyer can deduct 2 percent if the bill is paid within 10 days. Also buyers that purchase large volumes receive a price reduction. Such discounts provide an incentive to customer to buy more from one given seller.
Functional discount also called trade discount is offered by seller to trade channels members who perform certain functions, such as selling, storing, and record keeping. A seasonal discount is a price reduction to buyers who buy merchandise or service out of season .for example, lawn an garden equipment manufacture offer seasonal discounts to retailers during the fall and winter months to encourage early ordering in anticipation of the heavy spring and summer selling seasons...
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