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what are "trade" prices?

M

Mike Paull

Jan 1, 1970
0
It usually just means that they claim to be selling
the items for what a retailer would pay for them.

Thats often a lie.

I thought that trade just got you a discount off the RRP whereas buying an
item for what a retailer does was considered wholesale??

Mike
 
P

Phil Allison

Jan 1, 1970
0
"Mike Paull"
"Rod Speed"
wrote:


I thought that trade just got you a discount off the RRP whereas buying an
item for what a retailer does was considered wholesale??


** Back when we had the old wholesale sales tax system, the amount of tax
was calculated on the price paid at the transaction immediately prior to
sale to an end user.

So a retail shopkeeper paid sales tax on his ( taxable) purchases, so would
a tradesman buying materials etc. The tax was collected by tax office
registered wholesalers - who then paid it to the tax office.

However, any retailer could offer a "trade discount" to customers who were
intending to "on sell" the items - as a means of attracting business.
The discounted prices would often be the same as or better than those
offered by regular wholesalers - particularly if the retailer was making
bulk purchases from manufactures or was involved in direct importing.

As any sales tax would have been paid at an earlier stage in the chain it
would be a smaller amount.

This is what WES Components have long done.




............ Phil
 
R

Rod Speed

Jan 1, 1970
0
I thought that trade just got you a discount off the RRP whereas
buying an item for what a retailer does was considered wholesale??

Nope, 'trade' is another name for someone in the industry.
 
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