A new soap manufacturer wants to get its product to national retailers. It recently developed a product that executives think will be able to compete against top dogs such as Dove and Dial. However, they know that retailers are often skeptical of carrying new products when their success is not known. The soap manufacturer therefore offers a price reduction to the retailers for each case of soap they buy. The soap manufacturer is most likely using a

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The soap manufacturer is using a buying allowance by offering a price reduction to retailers for each case of soap they buy. This is a common tactic used by manufacturers to incentivize retailers to carry their new products. Dealer loader refers to a manufacturer providing extra stock to retailers at no extra cost, merchandise allowance refers to a payment made by a manufacturer to a retailer for promoting and displaying their product, scan-back allowance refers to a manufacturer reimbursing a retailer for scanning the product at the point of sale, and buy-back allowance refers to a manufacturer agreeing to buy back any unsold inventory from retailers.

A New Soap Manufacturer Wants to Get Its Product to National