What are trade discounts stated as?

Trade discounts are typically offered to incentivize purchases at the point of sale and are often structured as a reduction in the selling price. This approach encourages customers to buy by making the product more appealing through a lower price. These discounts are commonly used to strengthen business-to-business relationships, reward bulk purchases, or align pricing strategies with market conditions.

In contrast to the other choices, which refer to specific types of discounts or conditions that do not accurately represent trade discounts, the correct option directly captures the essence of what trade discounts are: they reduce the price at the time of purchase, encouraging customers to complete transactions. Therefore, they play a vital role in sales strategies and market competitiveness.