A trade discount rate is a reduction in the list price of a product offered to businesses that buy in bulk. It is typically expressed as a percentage of the list price. For example, a trade discount rate of 10% means that a business can purchase an item with a list price of $100 for $90.
Trade discounts are important because they can help businesses save money on their purchases. They can also help businesses build relationships with their suppliers. Historically, trade discounts have been used as a way to encourage businesses to buy more products from a particular supplier.