Dictionary of Procurement Terms

Dictionary of Procurement Terms

Welcome to the NIGP Online Dictionary of Procurement Terms, the comprehensive reference for public purchasing terms and concepts.

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Search Results: 1-8 of 8 results for “Discount”
  • Cash Discount

    A reduction in the full cost of a good or service when payment is made within a specified time period. See also: Payment Terms, Prompt Payment Discount, Discount.
  • Discount

    An allowance, reduction, or deduction from a selling price or list price extended by a seller to a buyer in order for the net price to become more competitive. More common forms of discounts include trade discounts, quantity discounts, seasonal discounts, and cash discounts. See also: Payment Terms, Prompt Payment Discount, Cash Discount.
  • Discount Schedule

    A listing of various discounts offered to a buyer for varying amounts of goods or services. May be requested as part of a solicitation.
  • Discount-From-List

    Mathematical calculation to determine a buyer’s price from a manufacturer’s price list. On non-automated term contracts, the manufacturer must submit a printed price list/catalog from which prices are to be figured. Prices in this category cannot be increased for a specified time period after the contract begins, unless otherwise noted in the contract.
  • Prompt Payment Discount

    A reduction in cost offered by the supplier in exchange for early/accelerated payment by the customer. See also: Payment Terms, Cash Discount, Discount.
  • Quantity Discount

    A reduction in the unit price offered for a large volume contract. Economies of scale would dictate that the larger the volume/quantity, the lower the unit price or total cost. See also: Volume Discount, Volume Leveraging, Economies of Scale.
  • Trade Discount

    A discount or reduction from a list price based on the position of the purchaser in the distribution channel, for example, as a distributor, retailer, or original equipment manufacturer.
  • Volume Discount

    Discount offered to a buyer from a seller based on increased quantity purchased, the size of the order, or total annual volume. See also: Quantity Discount, Volume Leveraging, Economies of Scale.



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