Skip to content
- Tutorials
- Python Tutorial
- Taking Input in Python
- Python Operators
- Python Data Types
- Python Loops and Control Flow
- Python Functions
- Python OOPS Concept
- Python Data Structures
- Python Exception Handling
- Python File Handling
- Python Exercises
- Java
- Java Programming Language
- Java Collections
- Java 8 Tutorial
- Java Programs
- Java Interview Questions
- Java Exercises
- Java Quiz
- Java Projects
- Advance Java
- Programming Languages
- System Design
- Interview Corner
- Computer Science Subjects
- DevOps
- Linux
- Software Testing
- Databases
- Android
- Excel
- Mathematics
- Python Tutorial
- DSA
- Data Structures
- Algorithms
- Analysis of Algorithms
- Searching Algorithms
- Sorting Algorithms
- Greedy Algorithms
- Dynamic Programming
- Graph Algorithms
- Pattern Searching
- Recursion
- Backtracking
- Divide and Conquer
- Mathematical Algorithms
- Geometric Algorithms
- Bitwise Algorithms
- Randomized Algorithms
- Branch and Bound
- Algorithms Tutorial
- DSA Tutorial
- Practice
- All DSA Problems
- Problem of the Day
- Company Wise Coding Practice
- GfG SDE Sheet
- Practice Problems Difficulty Wise
- Language Wise Coding Practice
- Curated DSA Lists
- Competitive Programming
- Company Wise SDE Sheets
- DSA Cheat Sheets
- Top Interview Questions
- Puzzles
- Data Science
- Web Tech
- Courses
-
Last Updated : 28 Mar, 2024
Improve
Summarize
Suggest changes
Post a comment
Like Article
Like
Save
Report
Cash Discounts and Trade Discounts are often used interchangeably. They are offered to attract customers and increase sales. The main purpose of both discounts is to increase product sales. A Cash Discount is offered by the seller to the buyer when the buyer is paying the bill, whereas, a Trade Discount is offered by the seller to the reseller during the time of purchase of a product.
What is Cash Discount?
A cash discount is a discount that the seller gives to the buyer for the period during which the invoice is valid if the invoice is paid within a certain time. Cash Discounts are also known as early payment discounts because they encourage customers to pay before maturity. By slightly reducing the buyer’s payment, it will encourage the buyer to pay on time.
Key features of Cash Discount:
- Fee Reduction: Cash Discounts help businesses cut or eliminate transaction fees related to credit card processing, aiding in maintaining profit margins and avoiding unpredictable costs.
- Consistent Margins: Implementing a Cash Discount program ensures steady profit margins across transactions, enabling accurate financial planning without the variability of processing fees.
- Increased Cash Flow: Cash Discounts attract bargain hunters, encouraging cash payments and potentially boosting future purchases. Additionally, they improve cash flow for smoother operations.
What is a Trade Discount?
A Trade Discount refers to a discount that provides a certain discount on the retail price of the product if it is purchased in large quantities. Trade Discounts are offered to increase the sale of the product. Sellers might keep buyers in the long run by giving Trade Discounts because that offers buyers confidence. It also manages buyer-seller relationships.
Key features of Trade Discount:
- Price Reduction: Trade Discounts lower the listed price of products or services, often as incentives for bulk purchases or favorable terms.
- Customized Deals: Unlike public discounts, Trade Discounts are negotiated between suppliers and customers based on factors like quantity or timing.
- Post-Purchase Adjustments: These Trade Discounts aren’t applied immediately but appear on invoices after purchase, allowing for tailored discounts.
Difference between Cash Discount and Trade Discounts
Basis
Cash Discount
Trade Discount
Meaning
A Cash Discount is offered by the seller to the buyer when the buyer is paying the bill.
Trade Discount is offered by the seller to the reseller during the time of purchase of a product.
Purpose of discount
Cash Discounts ensure timely payment for purchased items.
Trade Discount helps to increase the sales of the product.
Time when the discount is allowed
A Cash Discount is offered at the time when the buyer pays the bill amount.
A Trade Discount is offered at the time when the item is purchased.
Type of payment allowed
Cash Discounts are allowed on only transactions related to cash payments.
Trade Discount is allowed on transactions related to both cash and online payments.
Motive
Cash Discount is provided to motivate buyers to pay bills instantly.
Trade Discount is provided to retain customers and make them future buyers.
Record of discount
Cash Discounts are recorded because the amount that the customer pays is calculated after reducing the trade discount.
Trade Discounts are not recorded in the cash book.
Conclusion
Cash and Trade Discounts are major elements in business markets. Sellers can take advantage of these discounts to increase sales and retain customers. The two types of discounts work differently, but both help to increase business and keep customers happy.
Cash and Trade Discount – FAQs
What are the advantages of offering Cash Discounts?
The main advantages of offering Cash Discount is that it motivates the customer to make payments on time. Early payment incentives also increase the cash flow as they encourage customer to pay early.
What are the advantages of offering Trade Discounts?
The main advantage of offering Trade Discounts is that lower prices encourage customers to buy more products and can increase sales. Since more than one product can be purchased with the same amount, purchasing power also increases.
How to calculate Trade Discounts?
Trade Discount is calculated as a percentage of list price. It provide buyers goods and services at lower rate.
What is the list price?
List price is the basic price of a product before any discount is applied on it. List price is set by the manufacturer for their product or services.
Improve
Please Login to comment...
Similar Reads
Difference between Bilateral Trade and Multilateral Trade
Bilateral Trade comprises trade between two nations; whereas, Multilateral Trade involves trade between three or more countries and is typically conducted through international organizations such as the World Trade Organization. While bilateral trade can help to lower trade barriers between two nations, multilateral trade agreements aim to promote
4 min read
Trade and Auxiliaries to Trade
Commerce is a wide term consisting of all those activities, which are necessary for sale, transfer or exchange of goods and services. Commerce includes two kinds of activities trade and auxiliaries to trade. Buying and selling of goods is termed trade. But there are a lot of activities involved between this buying and selling, which are known as au
7 min read
Foreign Trade during 1950-1990|Trade Policy: Import Substitution
What is Foreign Trade? Foreign Trade refers to the exchange of goods & services between two or more nations or within boundaries. India has been one of the major trading countries since the time of independence, and primarily exports goods like cotton, silk, jute, indigo, wool, etc. India is also an importer of finished products like woollen cl
3 min read
Difference between Discount and Rebate
Discounts and Rebates are both mechanisms used to lower the price of a product or service, but they operate in slightly different ways. A discount is a reduction in the price of a product or service applied at the time of purchase. However, rebates are partial refunds offered to customers after they purchase. What is Discount?A discount refers to a
5 min read
Difference between Cash Basis and Accrual Basis of Accounting
The Basis of Accounting describes the method by which the financial transactions and activities are accounted for and reported in the books of accounts to determine the profit or loss of any company. Profit earned or loss incurred by the business can be determined either by Cash Basis of Accounting or Accrual Basis of Accounting. What is Cash Basis
4 min read
Difference between Cash Market and Derivative Market
Financial Markets can be defined as markets wherein financial instruments like securities, currencies, commodities, etc. are created and traded between two ends (buyers and sellers). Financial Markets can be classified into various types on the basis of nature, claim, time, structure, etc. On the basis of what types of instruments are being traded,
3 min read
Difference between Cash Market and Future Market
Financial Markets can be defined as markets wherein financial instruments like securities, currencies, commodities, etc. are created and traded between two ends (buyers and sellers). Financial Markets can be classified into various types on the basis of nature, claim, time, structure, etc. On the basis of Time of Delivery, Cash Market and Future Ma
3 min read
Difference between Balance Sheet and Cash Flow Statement
Balance Sheet and Cash Flow Statement are two of the most essential components In the field of financial management. The purpose of the preparation of the Balance Sheet and Cash Flow Statement for various companies and organisations is to gain valuable insights into the company's financial status. Both these statements serve as milestones from diff
4 min read
Difference between International Trade and International Business
International Trade and International Business are generally used synonymously, but they are not the same. The former involves the exchange of goods between different countries of the world; however, the latter involves business activities that take place beyond the geographical boundaries of a nation. What is International Trade?The exchange of go
2 min read
Difference between Balance of Payment and Balance of Trade
Balance of Payment and Balance of Trade are two important terms that are sometimes confused as the same. The former is a statement of all transactions between entities in one country and the outside world over a specified time period; however, the latter is the difference between the Export and Import of Goods. Table of Content What is Balance of P
3 min read
Article Tags :
We use cookies to ensure you have the best browsing experience on our website. By using our site, you acknowledge that you have read and understood our Cookie Policy & Privacy Policy
'); $('.spinner-loading-overlay').show(); jQuery.ajax({ url: writeApiUrl + 'create-improvement-post/?v=1', type: "POST", contentType: 'application/json; charset=utf-8', dataType: 'json', xhrFields: { withCredentials: true }, data: JSON.stringify({ gfg_id: post_id, check: true }), success:function(result) { jQuery.ajax({ url: writeApiUrl + 'suggestions/auth/' + `${post_id}/`, type: "GET", dataType: 'json', xhrFields: { withCredentials: true }, success: function (result) { $('.spinner-loading-overlay:eq(0)').remove(); var commentArray = result; if(commentArray === null || commentArray.length === 0) { // when no reason is availaible then user will redirected directly make the improvment. // call to api create-improvement-post $('body').append('
'); $('.spinner-loading-overlay').show(); jQuery.ajax({ url: writeApiUrl + 'create-improvement-post/?v=1', type: "POST", contentType: 'application/json; charset=utf-8', dataType: 'json', xhrFields: { withCredentials: true }, data: JSON.stringify({ gfg_id: post_id, }), success:function(result) { $('.spinner-loading-overlay:eq(0)').remove(); $('.improve-modal--overlay').hide(); $('.unlocked-status--improve-modal-content').css("display","none"); $('.create-improvement-redirection-to-write').attr('href',writeUrl + 'improve-post/' + `${result.id}` + '/', '_blank'); $('.create-improvement-redirection-to-write')[0].click(); }, error:function(e) { $('.spinner-loading-overlay:eq(0)').remove(); var result = e.responseJSON; if(result.detail.non_field_errors.length){ $('.improve-modal--improve-content .improve-modal--improve-content-modified').text(`${result.detail.non_field_errors}.`); jQuery('.improve-modal--overlay').show(); jQuery('.improve-modal--improvement').show(); $('.locked-status--impove-modal').css("display","block"); $('.unlocked-status--improve-modal-content').css("display","none"); $('.improve-modal--improvement').attr("status","locked"); $('.improvement-reason-modal').hide(); } }, }); return; } var improvement_reason_html = ""; for(var comment of commentArray) { // loop creating improvement reason list markup var comment_id = comment['id']; var comment_text = comment['suggestion']; improvement_reason_html += `
${comment_text}
`; } $('.improvement-reasons_wrapper').html(improvement_reason_html); $('.improvement-bottom-btn').html("Create Improvement"); $('.improve-modal--improvement').hide(); $('.improvement-reason-modal').show(); }, error: function(e){ $('.spinner-loading-overlay:eq(0)').remove(); // stop loader when ajax failed; }, }); }, error:function(e) { $('.spinner-loading-overlay:eq(0)').remove(); var result = e.responseJSON; if(result.detail.non_field_errors.length){ $('.improve-modal--improve-content .improve-modal--improve-content-modified').text(`${result.detail.non_field_errors}.`); jQuery('.improve-modal--overlay').show(); jQuery('.improve-modal--improvement').show(); $('.locked-status--impove-modal').css("display","block"); $('.unlocked-status--improve-modal-content').css("display","none"); $('.improve-modal--improvement').attr("status","locked"); $('.improvement-reason-modal').hide(); } }, }); } else { if(loginData && !loginData.isLoggedIn) { $('.improve-modal--overlay').hide(); if ($('.header-main__wrapper').find('.header-main__signup.login-modal-btn').length) { $('.header-main__wrapper').find('.header-main__signup.login-modal-btn').click(); } return; } } }); $('.left-arrow-icon_wrapper').on('click',function(){ if($('.improve-modal--suggestion').is(":visible")) $('.improve-modal--suggestion').hide(); else{ $('.improvement-reason-modal').hide(); } $('.improve-modal--improvement').show(); }); function loadScript(src, callback) { var script = document.createElement('script'); script.src = src; script.onload = callback; document.head.appendChild(script); } function suggestionCall() { var suggest_val = $.trim($("#suggestion-section-textarea").val()); var array_String= suggest_val.split(" ") var gCaptchaToken = $("#g-recaptcha-response-suggestion-form").val(); var error_msg = false; if(suggest_val != "" && array_String.length >=4){ if(suggest_val.length <= 2000){ var payload = { "gfg_post_id" : `${post_id}`, "suggestion" : `
${suggest_val}
`, } if(!loginData || !loginData.isLoggedIn) // User is not logged in payload["g-recaptcha-token"] = gCaptchaToken jQuery.ajax({ type:'post', url: "https://apiwrite.geeksforgeeks.org/suggestions/auth/create/", xhrFields: { withCredentials: true }, crossDomain: true, contentType:'application/json', data: JSON.stringify(payload), success:function(data) { jQuery('.spinner-loading-overlay:eq(0)').remove(); jQuery('#suggestion-section-textarea').val(""); jQuery('.suggest-bottom-btn').css("display","none"); // Update the modal content const modalSection = document.querySelector('.suggestion-modal-section'); modalSection.innerHTML = `
Thank You!
Your suggestions are valuable to us.
You can now also contribute to the GeeksforGeeks community by creating improvement and help your fellow geeks.
`; }, error:function(data) { jQuery('.spinner-loading-overlay:eq(0)').remove(); jQuery('#suggestion-modal-alert').html("Something went wrong."); jQuery('#suggestion-modal-alert').show(); error_msg = true; } }); } else{ jQuery('.spinner-loading-overlay:eq(0)').remove(); jQuery('#suggestion-modal-alert').html("Minimum 5 Words and Maximum Character limit is 2000."); jQuery('#suggestion-modal-alert').show(); jQuery('#suggestion-section-textarea').focus(); error_msg = true; } } else{ jQuery('.spinner-loading-overlay:eq(0)').remove(); jQuery('#suggestion-modal-alert').html("Enter atleast four words !"); jQuery('#suggestion-modal-alert').show(); jQuery('#suggestion-section-textarea').focus(); error_msg = true; } if(error_msg){ setTimeout(() => { jQuery('#suggestion-section-textarea').focus(); jQuery('#suggestion-modal-alert').hide(); }, 3000); } } document.querySelector('.suggest-bottom-btn').addEventListener('click', function(){ jQuery('body').append('
'); jQuery('.spinner-loading-overlay').show(); if(loginData && loginData.isLoggedIn) { suggestionCall(); return; } // load the captcha script and set the token loadScript('https://www.google.com/recaptcha/api.js?render=6LdMFNUZAAAAAIuRtzg0piOT-qXCbDF-iQiUi9KY', function() { setGoogleRecaptcha(); }); }); $('.improvement-bottom-btn.create-improvement-btn').click(function() { //create improvement button is clicked $('body').append('
'); $('.spinner-loading-overlay').show(); // send this option via create-improvement-post api jQuery.ajax({ url: writeApiUrl + 'create-improvement-post/?v=1', type: "POST", contentType: 'application/json; charset=utf-8', dataType: 'json', xhrFields: { withCredentials: true }, data: JSON.stringify({ gfg_id: post_id }), success:function(result) { $('.spinner-loading-overlay:eq(0)').remove(); $('.improve-modal--overlay').hide(); $('.improvement-reason-modal').hide(); $('.create-improvement-redirection-to-write').attr('href',writeUrl + 'improve-post/' + `${result.id}` + '/', '_blank'); $('.create-improvement-redirection-to-write')[0].click(); }, error:function(e) { $('.spinner-loading-overlay:eq(0)').remove(); var result = e.responseJSON; if(result.detail.non_field_errors.length){ $('.improve-modal--improve-content .improve-modal--improve-content-modified').text(`${result.detail.non_field_errors}.`); jQuery('.improve-modal--overlay').show(); jQuery('.improve-modal--improvement').show(); $('.locked-status--impove-modal').css("display","block"); $('.unlocked-status--improve-modal-content').css("display","none"); $('.improve-modal--improvement').attr("status","locked"); $('.improvement-reason-modal').hide(); } }, }); });
