Trade Terms / Folding: Profitable growth through performance-oriented condition management

What are trade terms?

The term describes in the broadest sense customary contractual formulas by the International Chamber of Commerce.

In a narrower sense, it is about a condition system.

What is a condition system?

Prices and conditions: income lever or value destroyer?

Price and condition management is demonstrably the most important and strongest instrument for increasing corporate profitability. But: Aggressive price and condition policy as well as increasing concentration of trade lead to the destruction of values ​​for the manufacturers.
The "vicious circle" in price and condition management

The "Price Waterfall"

That is why the trade terms in many companies are at a very critical level. Conditions tend to rise continuously without a corresponding return on investment and often exceed > 50% of the gross list price. To compensate, these are regularly adjusted and reach the level of "moon prices", the relationship between list price and RRP becomes disproportionate.
Price increases are often thwarted by additional concessions on terms and conditions. The result: "moon prices" and rising conditions.

What can a Trade Terms project achieve?

Bavaria Consulting supports companies in the analysis, conception and implementation of price and condition projects / trade terms for sustainable revenue and earnings protection.


The problem of "moon prices" with high condition factors at the same time can be effectively countered by folding. The aim of folding is to eliminate non-performance conditions while at the same time lowering the gross list prices. The purchase prices to the trade remain unchanged.

Control-oriented condition system

A control-oriented price and condition system is based on the process along the value-added stages.

Trade Terms / Folding: Project phases and procedure at a glance

Trade Terms / Folding: Value Proposition

Our experience is your success!

The partners of Bavaria Consulting have more than 20 years of project experience in the area of ​​trade terms / folding - key account management - annual discussions and negotiation strategies with retailers.

Our expertise is cross-industry - food, beverage and pharmaceuticals.

In the SWEETS GLOBAL NETWORK e.V. Magazin, Lebensmittel Praxis and Drinks Newspaper you will find our current press articles on Trade Terms / Folding.

Ihr Ansprechpartner:
Thomas Pielenhofer

Head of Sales Experte Trade Terms / Folding
Phone+49 89 18908070
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