A deduction made by a wholesaler from the catalogue price and which represents a retailer's profit margin is called?

The deduction made by a wholesaler from the catalogue price and which represents a retailer's profit margin is called a trade discount. It is a discount given to retailers by wholesalers to encourage them to buy in bulk and to build long-term business relationships. The trade discount is calculated as a percentage off the list price or catalogue price of the product. The retailer then sells the product to the end customer at the full list price, making a profit margin between the trade discount price and the list price. The trade discount is different from a cash discount, which is a discount given to the buyer if they pay the invoice within a certain time frame, and a quantity discount, which is a discount given for buying a large quantity of goods. Overall, trade discounts are a common practice in the business world to incentivize sales and build relationships between wholesalers and retailers.