slotting fee

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slot·ting fee

A fee charged by a retailer in exchange for stocking a particular product or displaying it in a special location. Also called slotting allowance.
References in periodicals archive ?
According to the FTC (2003), "Slotting allowances can facilitate these incentives by allowing manufacturers to charge higher wholesale prices (thus higher variable margins for the manufacturer) while compensating the retailer through the slotting fee.
The company reports it will earn $45,000,000 in cash from the sale, subject to an inventory and slotting fee adjustment, a $5 million subordinated promissory note, and a warrant to purchase 2,000,000 shares of common stock of Yogurt Holdings II, Inc.
Bond's committee earmarked the sum of $900,000 to be used by the FTC to investigate slotting fee practices (Weir 1999; 2001), which are potential violations of the Sherman Act, the Robinson-Patman Act, and the Clayton Act (Levin 1991).
Manufacturers may offer to pay retailers a slotting fee for a new product to indicate their confidence that consumers will buy it.
36) In support of their position, Market Power School proponents cite, albeit with disagreement, an alleged steep rise in the frequency of slotting fee demands and the sharp escalation in the size of fees demanded over the past decade.
The authors are not aware of any subsequent rulings by the Service on slotting fee treatment.
Galdieri's dream, to bypass distributors entirely, would mean paying supermarkets a slotting fee for guaranteed shelf space.
We paid the slotting fee up-front, the product arrived on time, a warehouse worker stored the product in the chilled food area rather than the freezer, the product spoiled, and the supermarket chain demanded that we replace it for free and pay to pick up the damaged goods.
If we say that we do not feel that we have to pay $50,000 or more for a slotting fee, they often tell us they are not going to carry the item or, at best, give us a small spot in the mix.
Or say we only have facings for red ketchup, so you'll have to pay an extra slotting fee.
its inability to maintain relationships with its co-packers, its inability to maintain a consistent and cost-effective supply of raw materials, its inability to receive returns on its trade spending and slotting fee expenditures, its inability to maintain brand image and product quality, its inability to protect its intellectual property, the impact of current and future litigation, its inability to develop new products to satisfy customer preferences, its inability to maintain effective internal controls and the impact of intense competition from other beverage suppliers.
The consideration to be received by CoolBrands in connection with the sale is US$45,000,000 in cash (subject to an inventory and slotting fee adjustment), a US$5 million subordinated promissory note, and a warrant to purchase 2,000,000 shares of common stock of Yogurt Holdings II, Inc.