Financial & Commercial
Net Rate
The base cost a supplier charges a distributor, before any markup or margin is added.
In simple terms
Net rate is the wholesale price you buy at — your profit gets added on top of this.
Real-world example
A tour operator buys a hotel room from a bedbank at $100 net per night.
Why it matters
Net rates are the foundation of nearly all B2B travel commerce — everything else is built on top of this number.
Common mistake
Confusing net rate with sell rate — quoting a net rate to a customer by mistake is a costly, common error.
Interview question
What's the practical difference between operating on net rate versus a commission model?
Related terms
MarkupMarginCommissionB2B