ALLOWANCES: HERE TO STAY?

Some retailers, wholesalers and analysts polled by SN said the industry might be better off with a "dead-net" pricing system in which all vendor rebates are subtracted from the price up front, which is how Wal-Mart, Bentonville, Ark., conducts business. Others said the current system, in which suppliers provide incentives for retailers to sell more product and help pay for promotions has some benefits

Some retailers, wholesalers and analysts polled by SN said the industry might be better off with a "dead-net" pricing system in which all vendor rebates are subtracted from the price up front, which is how Wal-Mart, Bentonville, Ark., conducts business. Others said the current system, in which suppliers provide incentives for retailers to sell more product and help pay for promotions has some benefits for both parties, if handled properly.

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TAGS: Walmart