trade allowance

trade allowance definition - business

trade allowance

  1. A price reduction offered to retailers or distributors in an effort to stimulate sales of a product. Also called trade discount.
  2. An allowance for cargo losses that result from the nature of the product carried. For example, a small proportion of petroleum products may leak or remain in a pipeline.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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