Allowances
Allowances are the type of reduction from the list price. It also refers to promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer’s products in some way. For example, trade-in allowances are price reductions given for turning in an old item when buying a new one. Trade-in allowances are most common in the automobile industry but are also given for other durable goods. Promotional allowances are payments or price reductions to reward dealers for participating in advertising and sales support programs.
Category: Marketing & Public Relations
Previous: ← Discount
Next: Segmented pricing →
More from this Section
- Service variability
Service variability means that the quality of services depends on who provides them as ... - Complex buying behavior
Undertaken by consumers when they are highly involved in purchase and perceive significant ... - Personal factors
Personal factors refer to personal characteristics that influence a buyer’s decision ... - Universal product code
Universal product code is the bar code, this is scanned by retailers, wholesalers, and ... - Interactive marketing
Interactive marketing means that service quality depends heavily on the quality of the ...