Slotting+Allowance

Slotting Allowance- A slotting allowance is a discount offered by a manufacture as an incentive to a retailer to guarantee a certain area on the shelf of their store.

Example: Kellogg’s offers Loblaws 15% off of their order to ensure a space on the end of the cereal aisle. Also, the company that has a stand in the middle of the store would have offered a higher slotting allowance than the company who's products are on the bottom of a shelf.

Source: Canadian Marketing in Action