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Buying Allowance- A form of trade sales promotion in which the retailer is offered a discount on the purchase of the product at a particular point in time. The discount is often tied to purchase of a particular number of units.

Example: A manufacture sells to a retailer at certain price unit point and after that point you give them a discount because there buying in bulk. Hairdressers would go to the manufacturer to get a discount for buying in bulk.

__Promotional Allowance__- A price reduction or discount granted by manufacturer to a member of the marketing channel in return for some form of a special promotion of a particular product.

Example:Store owners want promotions to advertise particular products and when there is a over stock they want to sell that product and that special promotion will create a demand. Walmart goes to Telus and says we will sell this quantity at regular sales price and you give me these additional products at a discounted price.

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