COST SAVING ON TRADE PAYOUTS

MANAGEMENT SALES

InCPG sales, trade payouts refer to the payments made by manufacturers to retailers or distributors for various promotional activities such as trade promotions, discounts, rebates, and allowances. These payouts are designed to incentivize retailers to carry and promote the manufacturer's products, and to help drive sales.

Trade payouts can take many forms, including

Trade promotions: These are short-term marketing campaigns designed to drive sales, such as price discounts, buy-one-get-one-free offers, and coupons.

Volume-based discounts: These are discounts offered to retailers or distributors based on the volume of products they purchase or sell.

Rebates: These are payments made to retailers or distributors after a certain period of time, based on the volume of products sold.

Slotting fees: These are fees paid by manufacturers to retailers for the right to place their products on shelves or in specific locations in the store.

Trade payouts are a common practice in the CPG industry and are used by manufacturers to encourage retailers to carry and promote their products. However, trade payouts can be complex and difficult to manage, as they involve multiple parties and a variety of promotional activities. Effective management of trade payouts is essential for manufacturers to ensure that they are getting a good return on investment and that their products are being promoted effectively in the retail environment.

How Can Image Recognition Help?

Promotional tracking

accuracy: Image recognition technology can be used to track the execution of trade promotions in real-time, including the placement of promotional materials and product pricing. This can assist CPG brands in ensuring that retailers are following the terms of the promotion and avoiding overpaying for promotional activities that are not carried out as planned.

Optimize promotional spending:

Image recognition technology can assist CPG brands in identifying the most effective promotional activities and allocating promotional spending accordingly by analyzing sales data and consumer behavior patterns. This can help to maximize the ROI and reduce unnecessary promotional spending.