A handling allowance/charge is a special discount or reduced pricing offered by a manufacturer to retailers and distributors who must provide special handling to stock and sell the product. The handling (charge) allowances provide compensation for the additional work required on the part of the retailer or distributor. For example, grocery stores may be eligible for a handling allowance from a manufacturer if they redeem the manufacturer's discount coupons since the coupons require extra work on the part of the store staff.
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