Allocated Promotion

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Allocated Promotion

Goods that a manufacturer or supplier sells to a retailer at a lower price so the retailer can then offer them at a discount to consumers. The manufacturer or suppler makes the allocated promotion in order to generate sales without diminishing the retailer's profit. In general, there is a limit on the allocation promotion; that is, the retailer can only buy a certain number of goods. This prevents the retailer from buying more than he/she needs in order to sell them at a higher profit later.