Deduction Recovery Isn’t Just for Big Brands—Why Mid-Sized Suppliers Have the Most to Gain
- The HRG Team
- 2 days ago
- 1 min read
Fictional Scenario (but familiar enough to sting): Imagine Heritage Pantry Foods, a mid-sized supplier of specialty sauces, selling into four national retailers. They’ve been around for 15 years and pride themselves on lean operations. But when the CFO reviewed the books, he found $275,000 in uncollected deductions over the last two years—most tied to small compliance errors and post-audit claims.
For a billion-dollar brand, that’s a blip. For Heritage Pantry, it was the equivalent of losing a major seasonal promotion—or worse, a full-time operations hire—without even knowing it.
Why Mid-Sized Brands Feel It More:
Thin Margins: Smaller sales volume means each deduction hits harder.
Fewer Resources: AP teams are often one or two people juggling multiple responsibilities.
Limited Tech: Without a robust deduction recovery process, errors go undetected.
The Reality: According to industry benchmarks, suppliers lose 1–2% of gross revenue to deductions, with mid-sized brands often losing a higher percentage because they lack dedicated recovery teams.
The Opportunity: For a $50M brand, 1% equals $500,000. Even recovering half of that is enough to fund a product launch, warehouse expansion, or key hire.
Take Action: If you’re a mid-sized supplier, deduction recovery isn’t a “big brand” perk—it’s a survival tool. HRG’s team specializes in helping brands just like yours turn those silent losses into working capital.