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the highest prices if there are price brackets.  Still other manufacturers take a “hands-off” approach,
                 allowing wholesalers to price their products as they see fit.

                 Regardless of which approach is used, sophisticated wholesalers will estimate the margin potential of a
                 manufacturer’s line before negotiating the redistribution allowance.

                 The redistribution allowance is provided by the manufacturer to the wholesaler, usually reflected in the
                 net invoice price.  Ideally, the allowance amount is a reflection of both the manufacturer’s cost-avoidance
                 and the wholesaler’s cost to serve the target set of distributors.  Much more detail is shown in the coming
                 chapters; for now it is sufficient to say that the best allowance programs create clear “win-win” results for
                 both the manufacturer and the wholesaler.

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