Slotting allowance

Definition

Money a supplier pays once to get a new item accepted onto a shelf or into a warehouse.

Why It Matters

It is an entry fee and not a rent. The federal trade study that named it describes a one-time payment for the INITIAL placement of a product, so it arrives when a line is taken on and not every month it sits there. That makes it lumpy income tied to how many new items a house accepted last year, which is a thing a seller can flatter by loading the shelf. Ask which suppliers paid, when, and what the gross margin looks like without any of it.