Posted in Marketing and Strategy Terms, Total Reads: 933
Definition: Push Money
Push money is the extra incentive given to the retailers to ensure that they display the manufacturer’s product prominently and ensure that they stock up the product. This push money is generally given to improve sales.
Most of the fast moving consumer goods placed in retail stores are low involvement products and the buying pattern of the consumer depends on which product is placed in the front, which product is available always and probably to which stand am I attracted to. In such a situation a lot of the manufacturer’s sales depends on individual retailers and how they place and display and promote their product. Manufacturers developed the concept of push money as an incentive to be given to the retailers in order to ensure that their products gain the attention of the consumer. This is a cash incentive, unlike the advertising allowance or trade allowance given to the retailers.
This push money can also be considered as a sales incentive for employees to sell more products. The commission given on selling more of a product, and the offers given –like a trip or a holiday for the employee to reach a particular target in sales, is all covered under the concept of push money.