producer give the price reductions to middlemen such as wholesalers, industrial distributors, and retailers as a promotional effort to motivate them to stock products. For example, hairdressers can go to the manufacturer to get a discount for buying in bulk. They can get shampoos and other hair products at a cheaper rate.In the same way, middleman will pass along the price discount to the consumer that can encourages sales also. On the other hand, trade allowances will reduce the profits of producer but can promote the product in other ways such as by offering attractive shelf space or store location and highlighting the product as well.