Worked scenario
Trade offers applied differently by different salesmen
Trade scheme value is the distributor's margin, and inconsistent application converts a funded promotion into an unfunded discount.
3 min read
Principals fund schemes to move volume. The distributor applies them in the field and claims reimbursement afterwards.
Discretion creates a gap
Where the salesman decides how much of a scheme to pass on, some retailers get more than the scheme funds. That excess is not claimable and is absorbed silently.
Claims are the other half
Scheme value given but not claimed is pure loss. Distributors frequently discover, on reconciling, that a meaningful proportion of what they funded was never submitted.
What changes
- Scheme terms held centrally and applied at billing
- Scheme application recorded per invoice
- Claims to the principal reconciled against what was given
- Unclaimed or over-given scheme value visible
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