Let me offer some special words in retail that mask the real costs and flow of money:
Co-op - The dealer advertises and gets an ad cost sharing payment from the manufacture based on how much the dealer bought or some other percentage of what was pushed in the advert. Given the Dealer this may or may not be an additional profit center.
Rebates - Based on sales of a product, a 'rebate' is issued at the end of the quarter or year for a sliding (changes with volume) percentage of the sales.
Spiffs - A direct payment to the salesman for pushing a product, may be 1) paid directly to the salesman by the manufacture or 2) paid by the store with a deal from the manufacture or 3) paid directly by the Manufacture's Representative in cash, product, or other ''gifts'.
Show Specials - CES or other trade show 'deals' that are a special event where all kinds of deals can be put together to move last years stock, pre-sell product not yet built, strike volume deals, ect..
Programs - Deals based on volume usually that offer discounts to the dealer before the product is delivered.
The list goes on, clever ways to change the name of the flow of money for accounting and margin forming relationships.
Now use your imagination.
Co-op - The dealer advertises and gets an ad cost sharing payment from the manufacture based on how much the dealer bought or some other percentage of what was pushed in the advert. Given the Dealer this may or may not be an additional profit center.
Rebates - Based on sales of a product, a 'rebate' is issued at the end of the quarter or year for a sliding (changes with volume) percentage of the sales.
Spiffs - A direct payment to the salesman for pushing a product, may be 1) paid directly to the salesman by the manufacture or 2) paid by the store with a deal from the manufacture or 3) paid directly by the Manufacture's Representative in cash, product, or other ''gifts'.
Show Specials - CES or other trade show 'deals' that are a special event where all kinds of deals can be put together to move last years stock, pre-sell product not yet built, strike volume deals, ect..
Programs - Deals based on volume usually that offer discounts to the dealer before the product is delivered.
The list goes on, clever ways to change the name of the flow of money for accounting and margin forming relationships.
Now use your imagination.