Topics Covered
Promotion Types
Promotion type indicates who is responsible for paying the value of the discount the customer receives at the retail store.
Co-funded Promotions: A co-funded promotion is one where the brand funds a portion of the discount issued to your customers.
For example, a "$1 Off" discount can be co-funded by the brand for $0.50. This means that you, the retailer, must fund the remaining $0.50.
Or if the discount is “$2.50 Off” and it’s co-funded, the brand will pay for $1.25, and the retailer must fund the remaining $1.25.
100% Brand-Funded: A promotion that is 100% brand-funded means that the brand will reimburse you for the full discount value issued to your customer.
For example, a "$1 Off" discount means the brand funds the full $1 off.
·Or if the discount is “$0.75 Off”, the brand funds the full $0.75 to the retailer.
Terms to Know
Discount Rules
A brand may customize its promotion by crafting its own discount rule. Here are some examples of discount rules:
Buy 2 and Get $1 Off - This is the most common kind of discount.
In this example, every consumer receives a discount value of $1.
Buy 2 for $2.99 – This is less common, with different particulars.
In this example, consumers receive a different discount value depending on how each retailer store prices the product(s) involved in the offer.
Discount Value
Discount value is the value that customers receive.
This amount varies based on the individual store pricing and the promotional offer value.
See below for how to calculate a Discount Value.
| Store A | Store B | Store C |
How much the retailer sells applicable product(s) for. | $3.99 (for 2 packs) | $3.67 (for 2 packs) | $3.55 (for 2 packs) |
Promotional offer, “Buy 2 for $2.99”. · This means the offer value is $2.99. | $2.99 | $2.99 | $2.99 |
Discount Value | $1.00 | $0.68 | $0.56 |
Reimbursement Amount
The reimbursement amount is the value the retailer receives.
This amount varies based on the funding type and offer value.
See below for how to calculate the Reimbursement Amount.
Funding Type |
Offer | Brand Reimbursement Amount | Retailer Reimbursement Amount |
Co-Funding Offer | Buy (2) get $3 | $1.50 | $1.50 |
Co-Funding Offer | $1.50 off (1) | $0.75 | $0.75 |
100% Brand-Funded | Buy (2) get $3 | $3 | $0 |
100% Brand-Funded | $1.50 off (1) | $1.50 | $0 |
Price Restrictions
Some stores might hike item prices during promotions to increase profits.
For example, if a brand offers 2 items for $2, a retailer might raise the price from $4 to $40 before the promotion, making 2 items cost $80.
The retailer might expect a $78 reimbursement, but this would be flagged as fraud, and the store would be removed from the promotion.
Why? The Brand budgeted to reimburse $6 per customer ($4x2 product cost - $2 consumer cost).
Promotions are typically invalid with other discounts, following the "discount cannot be issued along with any other discount" rule.
Frequently Asked Questions
Why was I removed from a promotion?
Why was I removed from a promotion?
If you increase the price of a product prior to a promotion that will be flagged as a fraud and your store(s) will be removed from the promotion.
Why won’t brands let retailer consumers always stack discounts?
Why won’t brands let retailer consumers always stack discounts?
Brands want to make sure that consumers receive discounts.
However, they want to make sure they don’t lose money when a unit is moved.
Why can’t I dramatically increase prices before an offer promotion?
Why can’t I dramatically increase prices before an offer promotion?
Brands will flag this as fraud and will refuse to pay retailers for what they consider “overpriced” products.
If your store is flagged for fraud, you won’t receive a monthly payment.