Trade promotion can persuade retailers or wholesalers to cany a brand, give it shell' space, promote it in advertising and push it to consumers. Shelf space is so scarce these days that manufacturers often have to offer price discounts, allowances, buy-haek guarantees or free goods to retailers and wholesaler to get on the shelf and, once there, to stay on it.
Manufacturers use several trade promotion tools. Many of the tools used for consumer promotions - contests, premiums, displays - can also he used as trade promotions. Alternatively, the manufacturer may offer a straight discount off the list price on each case purchased during a stated period of time (also called a price-off, off-invoice or off-list). The offer encourages dealers to buy in quantity or to carry a new item. Dealers can use the discount for immediate profit, for advertising or for price reductions to their customers.
Manufacturers may also offer an allowance (usually so much off per case) in return for the retailer's agreement to feature the manufacturer's products in some way. An advertising allowance compensates retailers for advertising the product. A display allowance compensates them for usingspecial displays.
Manufacturers may offer ./ree goods, which are extra cases of merchandise, to intermediaries that buy a certain quantity or that feature a certain flavour or size. They may offer push incentives - cash or gifts to dealers or their sales force to 'push' the manufacturer's goods. Manufacturers may give retailers free speciality advertising items that carry the company's name, sueh as pens, pencils, calendars, paperweights, matehbooks, memo pads and ashtrays.
Was this article helpful?
As with any web site, SaleHoo has a number of features that will help you in buying products from around the world. Once you have an account on SaleHoo, which only costs a one-time fee, you can establish up to twenty named searches for products. After that, any time those items become available, you’ll be alerted.