Major Forms of Trade Allowances

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a. Buying Allowances: Typically when a manufacturer to get its new brand accepted by retailers. Deals offered periodically to trade that permit wholesalers and retailers to deduct a fixed amount from the invoice

 

b. Promotional Allowances: Retailers receive slotting allowances for featuring the manufacturer‘s

brand in advertisements or for providing special displays.

 

c. Slotting Allowances: The fees manufacturers pay retailers for access to the slot, or location. Its is the practice of manufacturers paying retailers for shelf space.

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