Dealer Incentive

If you go to a store that gives you a special sale on Pixel over Galaxy, Nissan over Toyota, Hunt’s Ketchup over Heinz, or any other kind of equivalent products, chances are a dealer incentive is involved. The company who sold you that product is the retailer; they get a spiff or extra commission or additional dollars on top of whatever spread they made in selling it to you, from buying it at $2.88 and selling it for $3.71.

One of the great aspects of the free market economy is the variety of choices the consumer has in almost any product, from cell phones to cars, from dresses to guitars, and so forth. From the service or product providers’ perspective, they need to get an edge against their competition for market share from the same targeted customers.

Think: Rebates, discounts, bonuses, or other pricing revisions that allow the dealer a better profit margin for specific items, and further perks as the market...warrants.