The End-of-Quarter Trap: What Retail Suppliers Miss—Until It’s Too Late

You’ve denied the deduction. You’ve sent your email. You’ve moved on.

Then—boom—$400,000 disappears from your check six months later.

Welcome to the end-of-quarter trap.

“I Thought This Was Resolved.”

That’s what one supplier said when Boyd Evert, CEO of HRG, walked into a meeting and reviewed the deduction in question. The supplier had pushed back. He had said the words:

“This is invalid. I don’t approve it.”

The auditor’s response? “We’re at an impasse. We’ll take it from here.”

And that’s exactly what they did—they took it. Escalated it up the chain. Past the buyer. Past the VP. All the way to the SVP. Without warning. Without final confirmation. Without another word.

Six months later, the deduction posted. The supplier never saw it coming.

What Actually Happened?

Here’s the hidden reality: Just because you deny a deduction doesn’t mean it’s closed. In fact, if you don’t explicitly ask “Has this claim been canceled?” and receive confirmation, the auditor may continue pursuing the charge, sometimes escalating it behind the scenes.

That’s the trap. And it often springs at the end of a quarter, when financial reporting is due, auditors are under pressure, and ambiguous claims suddenly get fast-tracked.

Lessons from COVID: When Uncertainty Meets Policy

This isn’t a one-time horror story. During COVID, HRG saw how fast deduction risks could spiral. When demand for hand sanitizer and disinfectants surged, some retailers placed massive orders, well above forecast.

One smart supplier proactively sent a letter from their SVP to all their retail partners:

“Any orders placed above our current forecast will not be honored and are not subject to fines or penalties.”

They still got hit with deductions—but HRG helped get every one of them reversed. Why? Because the terms had been clearly communicated—in writing—before the storm hit.

The Tariff Twist: Why It’s Happening Again

Fast forward to today. Tariff volatility is stirring up the same uncertainty we saw in the early days of the pandemic. Orders were canceled. Costs changed midstream. Forecasts got tossed aside. Emails flew back and forth with phrases like “Let’s revisit this later” or “We’ll absorb some of the cost for now.”

Now, guess who’s reading those emails? Not your buyer. Not your merchandiser. Your auditor.

And they’re trained to interpret ambiguity in the retailer’s favor.

How to Avoid the Trap

Here’s what Boyd recommends:

• Send a “capstone email.” Summarize the agreement. Clarify pricing and promotional terms. State what no longer applies.

• Think like an auditor. They’re part of your audience—even if they’re not in the room.

• Don’t go full John McEnroe. (Translation: Don’t rage-email the audit team.) Stay calm. Clarity always beats confrontation.

• Coordinate internally. Make sure your sales, logistics, and finance teams aren’t giving mixed signals across retailers.

• Lean on expert insight. HRG sees deduction trends across categories. That visibility helps you avoid pitfalls you didn’t know existed.

Bottom Line: Don’t Assume Silence Means Closure

In retail, ambiguity has a cost. And sometimes, that cost hits hard—right when you least expect it.

So if you’ve recently denied a deduction and haven’t followed up… If tariff-related negotiations were left vague… If your inbox holds a half-dozen “we’ll circle back on this” threads…

It’s time to double-check before quarter-end. And if you're unsure where to start, HRG is here to help.

Book a Free Strategy Call. Let HRG help you avoid the next $400,000 mistake. 

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