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Resources

No jargon, no BS, no MBA required. We explain in plain language what really matters, so you can grow your brand with clarity, and confidence.

Trade Spend Pedro Noyola Trade Spend Pedro Noyola

Fred Schroeder's Off-Invoice Allowance and MCB Math: What Your Trade Dollars Really Do

One case, $12.69 in trade spend. Only $4.16 of it actually reached the retailer. The other $8.53 stayed with the distributor. A 10% chargeback gets billed against a wholesale price 40% higher than yours, so that "10%" really costs 14% of your case rate. Off-invoice allowances are worse: distributors stock up at the discount, and maybe 10 cents of every discounted dollar ever touches the shelf.

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