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Within many promotions, a deal allowance will contain multiple components. For example, a $.50 amount-off deal may be composed of a $.30 chain allowance and a $.20 distributor allowance. This information can be included in a promotion through Item & Cost’s “Allowance Component” feature.
Through Allowance Components and Third Party roles, a provider can share allowance component information with subscribers and third parties. Both subscribers and Third Parties can be restricted from viewing specific components, such as a distributor’s share.
Together with the ability to include third party notifications, this utility enables:
Deal allowance components to be set up in a promotion.
Component information to be listed in a promotion notification or report.
Interested third parties to be notified of promotions and deal components.
Third party viewing restrictions for specific components.
A “sum” feature that determines whether a component's allowance is included in the total allowance.
Notes:
At this time, deal allowance components can only be used with special Amount Off (Cents Off) deals.
Allowance components must be turned on before the buttons and menus described will be visible. Please contact Prescient Client Support for more information on allowance component authorizations.
Allowance components do not generate "real" costs. They are used to convey information only.
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Restricting the display of components online, in reports, and in notifications |
A traditional Item & Cost promotion involves a provider (such as a manufacturer) offering a discount to the subscriber (retailer).
For example, a simple $.50 discount on all purchases of item XYZ between 03/01/2002 and 03/31/2002.
In many instances though, a distributor is involved in the manufacturer-to-retailer supply chain, and will be involved in the financial cost of the promotion. Item & Cost allowance components can be used to convey this information to the distributor.
For example:
The manufacturer wants to offer a $.50 discount (allowance) to the retailer on item XYZ.
To increase sales, the distributor wants to add $.25 to that allowance, which they will pay themselves.
The manufacturer (acting as the promotion provider) adds the distributor information as an allowance component and adjusts the total Amount Off to $.75.
The promotion notification that is sent to the distributor (as a third party) lists the distributor portion to be paid.
Another example:
A $.45 amount-off deal may be composed of a $.25 advertising allowance and a $.20 chain allowance.
To include this information in the promotion, the allowances are entered as components.
Allowance Components
Advertising Allowance: $0.25
Chain Allowance: $0.20
Promotion notifications are sent out to the retailer (subscriber) when a promotion is "activated" or when other agreed-upon actions are taken (such as when the promotion is set up).
As discussed previously, the manufacturer (provider) can use allowance components to convey information in notifications, online, and in promotion reports. For example:
Primary Allowance: $0.50
Additional Allowance: $0.35
Distributor Allowance: $0.25.
In many cases, the manufacturer does not want the retailer to be aware of the distributor (or other third-party) information. Through Item & Cost, the manufacturer can "restrict" the display of certain components.
When a component is restricted, it is not visible to retailers and third parties that have viewing restrictions. However, it will be viewable by unrestricted third parties.
Using our example above, the retailer's notification lists:
Primary Allowance: $0.50
Additional Allowance: $0.35
And the unrestricted third party's (distributor's) notification lists:
Primary Allowance: $0.50
Additional Allowance: $0.35
Distributor Allowance: $0.25.
Any or all allowance components can be restricted from viewing by the retailer and specific third parties.
Each component has a Should Sum option that can be set to 'yes' (checked) or 'no' (unchecked). This is used to show a breakdown of allowances. The sum of all Should Sum components must equal the total Amount Off.
If the Should Sum option is set to Y (checked) for a component, it signifies that its allowance is included in the total Amount Off for the deal.
If the Should Sum option is set to N (unchecked), it shows that the component's allowance is NOT included in the total allowance.
Notifications and online displays show whether a component allowance is summed into the total. For example:
Amount Off: $0.85.
Primary Allowance: $0.50 (sum)
Additional Allowance: $0.35 (sum)
Distributor Allowance: $0.25
In this example, the distributor is contributing $.25, but the two summed components are the ones used to express the break down of allowances. The distributor's $.25 component is used to notify the distributor of their responsibility. By restricting the distributor's component, the subscriber (retailer) only sees the summed breakdown of the primary and additional allowances.
Note: Promotional costs are generated from the amount shown in a deal's Amount Off field. Allowance components are used for informational purposes only.