Single Trade Discount

Single trade discounts are one-time use coupons offered by store owners to customers making a
single purchase. A series discount is the contrary, where terms must be met before a consumer can
accumulate more savings. Single trade discounts, often known as "one-off" discounts, are special
incentives that your company makes to consumers or clients whose purchases match certain criteria.
You set the condition, which may be customers who pay with cash, buyers who buy in volume, or buyers
who buy within a particular promotional period.

Example of a Single Trade Discount

o The calculation is rather simple in the single discount formula. The single discount
calculation is as follows: $100,000 x 35% = $35,000 discount, for instance, if the offered
discount is 35% and the total worth of the goods sold is $100,000.

Discount Series

When repeated discounts are provided on the same item, it is known as a discount series, chain
discount, or trade discount series. Discount series are commonly denoted by a string of numbers with
dashes in between each one. The percentages are represented by the numerals. A discount that you
provide depending on a variety of distinct criteria is referred to as a discount series. The discount series
demands buyers to satisfy various requirements at various points in time rather than only delivering the
discount after one condition is satisfied.

Discount Series Formula

o Depending on how many rates of discount are used, the formula for computing the
components of a discount series is N = L(1-d1) (1-d2) (1-d3) ... and so on, where N is the
net price, L is the list price, and “d” are the rates of discount.

Example of Discount Series

o A 10/6/4 discount series, for instance, indicates that the item is initially discounted by
10%, then by 6%, and finally by 4%. Such numerous discounts are provided by vendors
in an effort to boost sales.

References

Gaines, M. (n/d). Why Would a Store Owner Single Trade Discounts?. Give CHRON.
https://smallbusiness.chron.com/would-store-owner-give-single-trade-discounts-11883.html

Quain, S. (2018, December 17). Differences Between a Single Trade Discount & Discount Series. CHRON.
https://smallbusiness.chron.com/differences-between-single-trade-discount-discount-series-22341.html
Writer, S. (2020, April 16). What Is a Discount Series?. Reference*.https://www.reference.com/world-
view/discount-series-516790a24f4b7203