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The old town general store in Louisville, Kentucky, offers incentives to suppliers who will stock their products on the end-caps in the store. the store provide trade discounts type of incentive.
Trade discounts are defined as the reduction in list price, also known as a discount, that is permitted by a supplier to the consumer while selling the product to the concerned consumer, typically in bulk quantities, in order to increase the sales of the business because more customers are drawn in when the discount is given on the list price of the product.
Simply put, a trade discount is a discount that is offered by the seller to the buyer at the time of a product transaction. In the list price or retail price of the quantity sold, it is provided as a reduction. In order to draw in more customers and get large orders, or to improve sales, the vendors typically permit this discount.
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