Trade Margin
Definition
Trade Margin is the difference between the actual or imputed price realised on a good purchased for resale (either wholesale or retail) and the price that would have to be paid by the distributor to replace the good at the time it is sold or otherwise disposed of.
Trade margins need to be estimated for different types of goods and will vary depending on the receiver of the goods. Transport charges invoiced separately by the producer will vary depending on the receiver of the goods. Trade Margins may be further subdivided, e.g. Wholesale Trade Margin and Retail Trade Margin.
The combined wholesale and retail trade margins, including taxes collected by wholesalers and retailers. For further explanation, see “wholesale margin” and “retail margin.” [1]
References
- Eurostat SUT Manual
- ↑ Concepts and Methods of the US Input-Output Accounts. K.J.Horowitz, M.A.Planting, 2009
