• Merchandise allowance is a Trader Promotion Techniques technique.
• Merchandise allowance is a type of trade promotion technique used by manufacturers to incentivize retailers to carry and promote their products.
• Merchandise allowances are a way for manufacturers to support their retail partners and increase the visibility of their products in the market.
• They are also a way for retailers to receive discounts on the products they purchase, which can help them improve their margins and profitability.

A merchandise allowance is a financial incentive offered by the manufacturer to the retailer in exchange for meeting certain requirements, such as placing an order for a minimum quantity of products, displaying the products in a prominent location, or promoting the products through in-store displays or advertising.