Which type of discount is aimed specifically at businesses?

A trade discount is specifically designed for businesses and wholesalers rather than individual consumers. This type of discount is offered based on factors like the volume of goods purchased or the nature of the business relationship. For instance, manufacturers may provide trade discounts to retailers who are buying in bulk, enabling them to resell at a profit while maintaining competitive pricing.

By offering trade discounts, suppliers facilitate better business-to-business transactions, encouraging greater order sizes and fostering long-term partnerships. This method is different from other discount types: a general discount might apply to any customer regardless of their business status, a cash discount incentivizes prompt payment, and a seasonal discount targets timing of purchases, typically related to specific times of the year. Trade discounts specifically focus on business transactions and relationships, making them a unique category tailored to the needs of businesses.