What Is Commission And Discount?

    In commodity prices, commission and discount are sometimes included.

A. Commission

Commission (Commission) refers to the service remuneration paid by the seller or the buyer to the agent's transaction or the introduction of the transaction.

China's foreign trade professional companies, when acting for the import and export business of domestic enterprises, usually sign an agreement between the two sides to stipulate the rate of agency commission, while the commission rate is not indicated in the price when quoted, and this Commission is called "dark Commission". If the price terms clearly indicate the number of commission, it is called "Ming servant". In China's foreign trade, it mainly appears in the quotations from Chinese exporters to foreign intermediaries.

The contract price, which includes commission, is called the commission price. The commission rate is usually based on the commission rate. The formula is:

Commission = commission rate X Commission

Commission = net price

The relationship between the commission price and net price should be included after finishing.

Inclusive price = net price / 1- gold rate

Commissions are usually written in English abbreviated letter C. For example, $1000 per metric ton CFR Seattle contains a commission of 2%, which can be written as 1000 dollars per metric ton CFRC2 Seattle. Among them, the "C2" means that the commission rate is 2%.

The Seller shall pay the Commission to the middleman after the payment is received.

   B. discount

Discount (Discount) is a price reduction given by the seller to the buyer on the basis of the original price. Using discount method to reduce the price and not reducing the quotation directly, so that the seller not only keeps the price of the goods, but also clearly shows that giving a certain discount to the buyer is a promotional means, such as quantity discount, clearance discount, new product promotion discounts, etc. For example, $20 per piece CIF New York discount 5% discount. When invoicing the seller, the seller should indicate the discount and deduct the discount at the total price.