How to Build a Deduction-Proof Trade Promotion Plan

Trade promotions are like sugar. Sweet for sales—but rough on your health if you don’t manage them carefully.

And when it comes to your margins, trade spend is a major deduction risk zone.

Many suppliers enter promotions without clear guardrails for billing timelines, documentation requirements, or retailer-specific compliance needs. The result? Disputes. Late claims. Duplicate deductions. You know the drill.

Let’s paint a picture: A fictional snack brand runs a buy-one-get-one event with a major grocery chain. Sales skyrocket. But months later, they’re hit with a deduction they already reimbursed. Why? Because one team billed based on the old UPC, and another on the new one. No one caught the mismatch, and the system flagged it as unpaid.

That’s not a sales failure. That’s a planning failure.

Here’s how you can start trade-proofing your promotion plan:

• Align sales, finance, and supply chain teams before the promo starts

• Document promotion terms with crystal clarity—including promo codes, SKU versions, and delivery timing

• Build in post-promo review windows to check for errors

• Set up a deduction audit strategy for 30, 60, and 90 days out

Promotions can drive revenue, yes. But they also invite chaos—unless your plan includes a rock-solid defense.

Take Action:

Trade spend should drive growth, not deductions. Let HRG help you build a smarter plan.

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