Negotiated Rate

Negotiated Rate

A Negotiated Rate is a price reduction that a supplier offers to a particular company in exchange for the business volume that the company agrees to provide. This pricing strategy serves as an incentive to encourage companies to make more purchases from the supplier, regardless of whether the discount is a percentage of the total amount, a flat rate, or a combination of both. This type of rate is designed to maintain the vendor’s loyalty and encourage customer retention. Thus, the Negotiated Rate is a mutually beneficial agreement between the supplier and the customer that can lead to stronger partnerships and increased revenue for both parties.