Scan-downs, also called Pay-for-Performance, are programs in which manufacturers pay retailers allowances based on units sold rather than cases shipped. These programs theoretically eliminate forward-buying and diverting because data comes from the checkout. Here's how the program works: The retailer puts up a shelf-talker near the product and/or lists it as a temporary price reduction in the weekly ad or store flier. After the allotted time period (usually two to four weeks), the retailer ...

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