Sell-through allowances are sales incentives offered by manufacturers to help distributors with margin protection with a retroactive discount off list price.
It’s no secret: sell-through allowance (STA) programs are the most reviled incentive in the channel marketing world. That doesn’t mean that they should be thrown out like yesterday’s leftovers – it means that the brand who delivers an amazing STA program then has a huge advantage over their competitors!
Sell-through allowances (STA’s) are a great way to protect your dealer’s margins and the overall price integrity of your products, but they have had a bum rap in some circles recently. The reasons for this are plain to see: some programs pay out way too infrequently to be effective, some tie up much-needed dealer cash,