What are slotting allowances?
Suppliers pay distributors slotting allowances for product placement on store shelves. Sometimes distributors request them, and sometimes suppliers offer them. Although common, these allowances are neither uniformly requested nor offered. The most common allowances are for new products or new product introduction allowances. These may also cover premium product placements, such as on eye-level shelves or special displays; the cost to have products remain on shelves or pay-to-stay allowances; or the cost to retailers if a product fails.
