A new allowance structure designed to provide members of Associated Food Stores with greater flexibility and cost savings is now available. The Tiered Incentive Discount (TID) program offers increasing discounts based on order quantities, helping retailers move beyond traditional pallet-only deals. 

Lon Herget, director of center store category management, emphasized its retailer-centric design.  

“TIDs were created with retailers’ needs in mind. This new allowance unlocks numerous opportunities for stores, enabling better cost efficiency, greater product customization and improved accessibility. We’re thrilled to leverage advanced warehouse technology to elevate display and merchandising capabilities, creating a more impactful in-store experience.” 

TIDs apply to select product groups during pre-commit events. Retailers can receive tiered discounts by purchasing specified case quantities on a single order or ship date. The more they buy, the greater the savings. The example below shows how TID tiers could appear: 

  • Tier 1: Purchase 10 cases and receive $2.00 off per case 
  • Tier 2: Purchase 15 cases and receive $3.00 off per case 
  • Tier 3: Purchase 20 cases and receive $4.00 off per case 

If a retailer orders 30 cases in a single transaction, the Tier 3 discount will still apply, meaning they’ll get $4.00 off per case. 

One standout feature of TIDs is the flexibility to mix and match items. Retailers are not restricted to specific quantities of each item within a deal. If the total tier quantity is met, retailers can order any combination of eligible products. 

TIDs provide discounts on top of existing traditional allowances, such as Off Invoice (OI), Temporary Price Reductions (TPR), and Performance-Based Allowances (PBA). These additional savings are highlighted in the comments box within Promo Events, making them easy to identify. 

TIDs represent a win-win opportunity for both wholesale and retail. For wholesale teams, these deals help optimize inventory management and drive larger, more efficient orders while offering tremendous savings to retailers. The collaborative effort to implement TIDs is an illustration of the dedication of those working at retail and behind the scenes, including distribution, procurement and many others to maximize selling opportunities through AFS.  

Retailers are encouraged to take advantage of TIDs to enhance their purchasing power and merchandising capabilities. By leveraging these tiered discounts, stores can achieve better cost efficiency and offer a more customized product assortment to customers. 

To learn more about upcoming TID opportunities, retailers can review the details within Promo Events or contact their retail account manager for guidance.