<Li> 3 / 7 net 30 extra 10 - this means the buyer must pay within 30 days of the invoice date, but will receive a 3% discount if they pay within 7 days after the end of the month indicated on the invoice date plus an extra 10 days . </Li> <P> Bargaining is where the seller and the buyer negotiate a price below the original asking price . </P> <P> Trade discounts, also called functional discounts, are payments to distribution channel members for performing some function . Examples of these functions are warehousing and shelf stocking . Trade discounts are often combined to include a series of functions, for example 20 / 12 / 5 could indicate a 20% discount for warehousing the product, an additional 12% discount for shipping the product, and an additional 5% discount for keeping the shelves stocked . Trade discounts are most frequent in industries where retailers hold the majority of the power in the distribution channel (referred to as channel captains). </P> <P> Trade discounts are given to try to increase the volume of sales being made by the supplier . </P>

Trade or functional discounts are offered by manufacturers to