Trade discounts are given for

Trade discounts are discounts given by suppliers to their customers for purchasing goods or services in bulk quantities. These discounts are usually based on the quantity of goods or services purchased and are intended to encourage large orders. In other words, trade discounts are given to customers who buy large quantities of products or services. It is an incentive given to encourage bulk purchases and help companies to reduce their inventory carrying costs. Although trade discounts can be based on other factors such as prompt payment or quick delivery, the primary purpose is to encourage bulk purchases.