How do retailers feel about slotting allowances?
Retailers argue that vendor allowances hide the true cost of doing business because the price retailers actually pay for the product is never known until after the product is sold. The problem comes when a retailer becomes buy-driven rather than sell-driven and he stocks stores based on whats available from the vendor rather than what his consumers demand according to an analyst from McDonald investments. If a company tries to fill its warehouse just to get the vendors allowance, the business is badly managed.
