How Understanding Book Discounting Can Pack Your Pocketbook

When you are a self-publishing author, making sense (and cents) out of convoluted terms like “trade discount” can make all the difference between being a struggling writer and a profitable one. Today we’re going to discuss the term “trade discount” in depth and learn how understanding it can help to improve your bottom line as an author. To understand “trade discount” one must first understand…

Discounts - Discounts are of two types -

(a) Trade Discount. Trade discount means the discount given to the customer/purchaser on the printed price of the product. For example, if the printed price of a particular product is Rs.10,000/- and it is sold for Rs. 8,000/- by the firm, then Rs.2000/- is considered as a trade discount.

(b) Cash Discount - It means discount offered to someone for making a prompt payment or payment before the date on which the amount is due. It acts as an incentive for the customers/purchasers of the firm to make early payments to the firm.