Trade Allowances

The video tutorial discusses the complexities of setting a product price and introduces trade allowances as a strategy to fine-tune pricing. Trade allowances are special discounts given to wholesalers or retailers to promote and sell products. The video covers different types of trade allowances, including advertising allowances, stocking allowances, and commissions, each serving a unique purpose in enhancing product visibility and sales. These strategies help achieve desired sales and market share.

Describe the concept of a stocking allowance.

How do commissions function as a form of trade allowance?