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Percent Subsidized Volume (% Subsidized Volume)
Definition
The percentage of total sales volume that is supported by trade funding or promotional incentives, such as off-invoice discounts, bill-backs, scan-based allowances, or temporary price reductions. This metric helps quantify how much volume is driven by funded promotions versus base sales.
How It's Calculated
(Subsidized units sold ÷ Total units sold) × 100
Example
During a four-week promotion, 600,000 of a brand’s 1 million units sold were supported by trade funding, resulting in 60% subsidized volume.
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