Washburn sells their guitars through a number of channels such as chains and online dealers,but they feel it is their independent dealers who sell the guitar for them.In recognition of their hard work,Washburn takes a smaller profit margin from them because they have to do more work.In essence,this special adjustment to the list price or quoted price is an example of a(n)
A) quantity discount.
B) seasonal discount.
C) trade discount.
D) cash discount.
E) promotional allowance.

Question

Quizplus · Accepted Answer

The special adjustment to the list price granted to independent dealers is an example of a trade discount, which is a discount given to channel members for performing certain functions such as selling, storing, and record-keeping.

Washburn Sells Their Guitars Through a Number of Channels Such