1 / 2

Understanding Trade Discounts and Net Prices in Pricing Models

This guide explains the relationship between list prices, trade discounts, and net prices using a formulaic approach. By examining the calculation of trade discounts as a percentage of list prices, we clarify how to arrive at net prices through specific examples. For instance, applying a 30% trade discount to a list price of $100 yields a net price of $70. This systematic breakdown provides clarity on pricing structures for various financial contexts and can aid businesses in their pricing strategies.

sydnee-cross
Télécharger la présentation

Understanding Trade Discounts and Net Prices in Pricing Models

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. P = B x R R = P/B B = P/R Portion Base

  2. Portion (P) = Base (B) x Rate (R) Trade Discount $ = List Price $ x Discount % $30 = $100 x .30 Net Price $ = List Price $ - Trade Discount $ $70 = $100 - $30 Net Price $/1 - Discount % = List Price $ $70/.70 = $100 Trade Discount $ List Price $ Net Price $

More Related