The rebate given to the retailer by the wholesaler to enable him make profit is known as?

Answer Details

The rebate given to the retailer by the wholesaler to enable him make profit is called a "trade discount". A trade discount is a reduction in the list price of a product that is offered by a wholesaler to a retailer. It is given as a percentage of the list price and is intended to enable the retailer to make a profit when selling the product at the list price to customers. For example, if a wholesaler sells a product to a retailer at a list price of $100 and offers a trade discount of 20%, the retailer would only pay $80 for the product. This means that the retailer can sell the product to customers at the list price of $100 and make a profit of $20. Trade discounts are commonly used in business-to-business transactions, especially in industries where there is a lot of competition and price negotiation. They are also used to encourage retailers to buy larger quantities of products, as the trade discount may increase as the quantity purchased increases.