A temporary price reduction that encourages larger purchases by distributors is called a

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A trade allowance is a temporary price reduction that is offered to distributors or other trade partners to encourage them to purchase larger quantities of goods. This type of promotion is commonly used in the retail industry to help manufacturers move excess inventory, boost sales or introduce new products. The trade allowance is typically a percentage or fixed amount that is deducted from the regular price of the product. It may be conditioned upon meeting certain sales targets, buying within a specified timeframe, or stocking the product prominently in stores.

A Temporary Price Reduction That Encourages Larger Purchases by Distributors