Major Trade Promotion Tools

Price Off: A price off (also called off – invoice or off – list) is a straight discount off the list price on each carton/case purchased during a stated time period. The offer encourages dealers to buy a quantity or carry a new item that they might not ordinary buy. The dealers can use the buying allowances for immediate profit advertising or price reduction.

Allowance: An allowance is an amount offered in return for the retailer’s agreement to feature the manufacturer’s products in some way. Advertising allowances compensates retailers for advertising the manufacturer’s product. A display allowance compensates them for carrying a special product display.

Free Goods: Free Goods are offered for extra cartons/cases of merchandise to middlemen who buy a certain quantity. Manufacturers might offer push money, which is cash or gifts to dealers or their sales force to push the manufacturer’s goods.