# What are the steps in computing single trade discount and discount series?

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In the single discount formula, the calculation is pretty straightforward. For example, if the discount offered is 35 percent and the total value of the goods sold are \$100,000, the single discount formula would be: \$100,000 x 35 percent = \$35,000 discount.

## How do you calculate single trade discount rate?

To find the trade discount by applying a trade discount series and using the single discount equivalent: Find the single discount equivalent by subtracting the net decimal equivalent from “1.” Multiply the list price by the single discount equivalent.

## How do you calculate trade discount?

If the discount is a percentage, you calculate the trade discount by converting the percentage to a decimal and multiplying that decimal by the listed price. If the reseller is purchasing \$1,000 worth of items at a 30-percent discount, the trade discount would be 1,000 x 0.3, which equals \$300.

## What is a single trade discount?

Single trade discounts are commonly known as “one-off” discounts that your business offers to customers or clients when their purchases meet a specific condition that would trigger that discount.

## What is a series of trade discounts?

By contrast, a trade discount series is when a seller offers more than one discount on a product. For example, a seller could offer three discounts on the item — 25%, 15%, and 5% for example. These are computed by taking each discount as a percent of the price AFTER the previous discount.

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## What is the equivalent single trade discount for a trade discount series?

The trade discount series 40/12.5//2 is equivalent to a single trade discount of 52.84%.

## What is the importance of trade discount and discount series in business?

A trade discount is an excellent way to attract a customer’s attention, by offering more for less. Promotional sales, coupons, volume purchases and other strategies can attract new customers and motivate them to buy your products, creating the impression that they are getting the most out of their money.