Here marketers allow wholesalers and retailers to deduct a set amount from the invoice they receive for merchandise. This programme is really just a price reduction offered to the trade on a particular marketers’ brand for a specified short promotional period. The incentive for the trade with this programme is that the price reduction increases the margin (and profits) a wholesaler or retailer realizes on the off-invoiced brand.
This scheme is in general available for many products, where if the bill amount is above a certain amount you get a certain percentage discount. The % varies from around 2% to 10%, from company to company and also from time to time.
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