The allowance given to a retailer to enable him make a profit is known as
Answer Details
The allowance given to a retailer to enable him make a profit is known as a trade discount. Trade discounts are reductions from the list price of a product or service and are given to wholesalers and retailers. It is usually a percentage of the list price and is intended to motivate retailers to sell the products at a higher profit margin. Trade discounts are not usually shown on invoices or financial statements, but are incorporated into the pricing structure of the product or service.