Bill-back display allowance is a form of trade allowance in which retailers receive allowances for featuring the manufacturer’s brand and providing special displays.
Further discussion on Bill-back display allowance:
Retailers do not deduct bill-back allowances directly from the manufactures invoice. Instead, the manufacturer offers a discount to retailers who prominently feature their brand in the retailers store on special displays. The bill-back display allowance is often offered in conjunction with a bill-back ad allowance offer.
Bill-back display allowance example:
As an example, let’s say the manufacturer Coke-Cola offers retailers 5% bill-back allowance for each case of Coke-Cola product if the retailer features the brand in local newspaper or other publication advertisements. Once the retailer publishes the advertisement and provides proof of the ad to Coke-Cola, the retailer can ask for a 5% ad allowance from Coke-Cola. At the same time, Coke-Cola may offer an additional 3% discount per case if the retailer features their products in a special display or end-cap in the store.
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