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Off-Invoice Promos

Definition

A temporary discount that a manufacturer applies directly to the invoice price when selling to a retailer or distributor. Off-invoice promotions reduce the upfront cost of goods for the retailer, making it easier for them to run price reductions, displays, or features in-store. These are one of the most common forms of CPG trade spend.

How It's Calculated

Discount amount subtracted directly from the manufacturer’s list price on the invoice (e.g., $8 list price − $2 off-invoice = $6 net price).

Example

A snack manufacturer offers a $1 off-invoice promotion on each case sold to Kroger for two weeks, allowing the retailer to temporarily lower shelf prices during a feature ad.

 

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