Who should pay 7-Eleven listing and promotion costs?
Short answer: No rule fits every deal. The principle that usually gets both sides to agree is this: whoever benefits more from the extra sales, and whoever decides on that item, pays the bigger share. Break costs into separate lines, agree the shares in writing, and tie promotion money to in-store sales data that both sides see the same way.
Most disputes between brands and distributors aren't really about the amount. They start with a loose agreement like "we'll split marketing fifty-fifty", followed by arguments about what counts as marketing.
Separate the items before talking about shares
| Cost | Who mainly benefits | Who decides | Common starting point |
|---|---|---|---|
| Fee to open shelf space for a new product, per SKU | Brand gets a long-term place on the shelf; distributor gets another product in its portfolio | Brand chooses how many SKUs to pitch | Brand pays most, or split by the length of the distribution contract |
| Shelf discount during the retailer's campaigns | Both get the sales in that period | Retailer sets the cycle; both decide whether to join | Split by the per-unit profit each side gives up |
| Volume rebate written into the retailer contract | Retailer | Set when the retailer contract is signed | Often already built into the agreed price; watch for double counting |
| Videos, creators and ads outside the store | Brand gets the name known; distributor gets the volume | Whoever plans the work | Agree round by round, tied to sales per store |
| Special display space in store | Sales during the activity | Distributor negotiates with the retailer | Split case by case |
Each chain names and charges these differently. Use the table only as a starting point for the conversation between the two of you.
Use incremental profit per unit to decide
One extra unit sold doesn't give the brand and the distributor the same extra profit. Work out each side's incremental profit per unit and use that ratio as the starting point for splitting the budget.
Hypothetical example: one extra unit sold earns the brand 6 baht more and the distributor 3 baht more (hypothetical figures, not real rates). A reasonable starting split for sales-driving spend is two parts brand, one part distributor, then adjusted for who controls which work.
What to write into the agreement
- Each cost on its own line, and who pays how much
- Which costs are charged per SKU, and whether several flavours mean paying several times
- What data the distributor will send the brand, such as shipments into stores, sales data from the retailer and stores in stock, and how often
- If the product is delisted, who carries leftover stock, and what happens to listing fees already paid
- Whether the distributor's promotion budget can replace markdowns
Common mistakes
- Agreeing on one total percentage without saying which items it covers, so every invoice becomes an argument.
- Tying the budget to shipments into stores. High shipments don't mean shoppers are buying. Tie money to that number and the distributor has a reason to push stock in rather than help it sell out.
- No budget outside the store. Every in-store cost is covered, but nobody pays to make shoppers aware of the product.
Limits
- This is negotiation guidance, not legal or accounting advice
- Figures in the example are hypothetical
- Each side's bargaining power depends on who has more alternatives, which varies by deal
FAQ
The distributor wants the brand to pay the whole listing fee. Is that normal? It happens, especially when a brand is new to Thailand. Ask what the distributor invests in return, such as a sales team, delivery or a promotion budget.
If the brand pays for marketing itself, what data should it get back? At minimum, monthly shipments into stores, whatever retailer sales data the distributor receives, and the number of stores in stock.
Budget by round or for the whole year? By round is better. Each round has its own indicators, and the next round is agreed from the results.
Sources
- Modern trade channel cost types used as common vocabulary: Subpayanunt (Thai), https://www.subpayanunt.com/post/modern-trade-hidden-costs-listing-fee
- How to work out incremental profit per unit: https://www.flowupth.com/en/insights/marketing-breakeven-units
Related guide: Getting Into 7-Eleven Thailand: How to Find an FMCG Distributor and Negotiate a Master Distributor Deal
Free tool: Flowup 7-11 Margin Backsolve
Sourced cost data: Flowup 7-Eleven Supplier Cost Sheet 2026
Next step: Not sure where your product should start? Send the Flowup team your product and where it sells today, on LINE or by email.
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