Characteristics of Trade and Non trade cement and their differences
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In this construction video tutorial, you will learn the characteristics of Trade and Non Trade cement and differences among them.
Trade Cement: Generally, the manufacturer sells trade cement to the dealers and distributors and they in return sell to the consumers.
Cement dealers purchase this type of cement from cement company and make retail sale from his own shop. The cement dealers get incentive from the company for selling the products.
The trade cement is expensive as compared to non trade cement. All the taxes should be disbursed while giving delivery whereas the taxes for non trade cement is disbursed in any month of financial year.
The profit of dealers and retailers is included in the cost of trade cement. So, the selling prices is raised and it becomes expensive.
Non-trade cement: Non-trade cement is directly sold to direct customer and there is no retailer and distributor. It is not sold to third party.
The manufacturer directly sells the non-trade cement to the consumer (builder, contractor or institution associated with any project and NGO or government). Here, the dealer is ignored.
There are not any heavy overheads and so, the non-trade cement is inexpensive than trade cement. The consumers like realtors, contractors etc. purchase in large quantities from manufacturer.
In non trade cement, the company can directly transmit the materials from its factory to the destination devoid of any doubt of middle man interfering with the product.
To identify the non trade cement, just look at the cement bag and there you will find the note as not for retail sale and designated for industrial consumer.
To get more details, go through the following video tutorial.
Video Source: Tutorials Tips
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