It is common for the manufacturer of a new product to have to pay a retailer $30,000 in order to get the shelf space needed to sell its new product in a particular retail establishment. This $30,000 fee is an example of a
A) slotting allowance.
B) promotional allowance.
C) quantity allowance.
D) rebates allowance.

Question

Quizplus · Accepted Answer

Slotting allowances are payments to retailers to get them to stock items on their shelves. All of these can increase sales but also add marketing cost to the manufacturer and affect profits.

It Is Common for the Manufacturer of a New Product