If a new grocery product does not achieve a predetermined sales target, some retailers require a penalty payment by the manufacturer to compensate the retailer for sales its valuable shelf space failed to make.What is this type of payment called?
A)a dropout charge
B)a loser fee
C)a failure fee
D)a retailer spiff
E)a drop-off settlement

Question

Quizplus · Accepted Answer

This type of payment is commonly known as a failure fee, where the manufacturer is penalized for not being able to achieve the sales target for their product, and compensate for the retailer's loss of potential sales. The other options such as dropout charge, loser fee, retailer spiff, and drop-off settlement do not accurately describe this type of payment.

If a New Grocery Product Does Not Achieve a Predetermined