Monies that must be paid to a retailer so they will take on a company's new product are known as:
A. slotting allowances
B. trade discounts
C. spiffs
D. new product fees

Question

Quizplus · Accepted Answer

A. slotting allowances
Slotting allowances are fees paid by manufacturers to retailers to secure shelf space for new products. This practice is common in the grocery industry and other retail sectors where shelf space is at a premium. The fee compensates the retailer for the risk of taking on a new product that has not yet been proven in the market and for the potential loss of sales from products that are displaced to make room for the new item.

Monies That Must Be Paid to a Retailer So They