Subsidy

What is a subsidy?

A subsidy is a financial contribution (often from a supplier or vendor) that reduces the selling price of a product temporarily without affecting the retailer's profit margin. It enables a store to offer attractive pricing to customers while still maintaining profitability.

Unlike traditional discounts, subsidies are typically used behind the scenes and can optionally be shown to the customer as a regular price drop or a promotional discount.

Subsidy is planned to be available during 2025, and the specifications of this feature will most likely change up until it is released.

Benefits

• Run flexible campaigns without hurting margins

• Simplify collaboration with suppliers

• Fine-grained control over visibility to the customer

• Full tracking and reporting built into the POS

How does subsity work?

1. A supplier offers to support a product's sale by paying a portion of its price for a limited period.

2. The retailer applies a subsidy to the product(s) in Flow Retail POS.

3. During the subsidy period, the selling price is adjusted based on the subsidy (fixed amount or percentage).

4. At the end of the subsidy period, reports are generated, and the retailer can claim reimbursement from the supplier (if applicable).

Types of subsidies

Visible subsidy

Shown as discount to customer:

• The customer sees the reduced price marked as a discount (e.g. "Was NOK 9,999 — Now NOK 8,999").

• Used for marketing campaigns, promotions, and price-sensitive sales.

• Increases transparency and urgency for the customer.

Pros:

• Increases conversion.

• Clear marketing message.

Cons:

• May affect perceived value of the product.

Hidden subsidy

Internal only, e.g. customer only see the sales price:

• The selling price is reduced, but no discount label is shown to the customer.

• Typically used when the goal is to stay competitive without advertising a discount.

Pros:

• Maintains price image.

• Useful for selective vendor-funded offers.

Cons:

• Less direct impact on perceived value for the customer.

Setting up a subsidy

1. Navigate to the Subsidy module in admin.

2. Create a new subsidy:

   • Add a name/description

   • Set start and end date

   • Choose whether the subsidy should be visible to the customer (as a discount)

3. Add products by SKU or using filters (brand, category, etc.)

4. Choose subsidy type:

   • Fixed amount (e.g. NOK 500)

   • Percentage (e.g. 10%)

5. Activate the subsidy

After the subsidy period

• The product prices will revert to normal.

• Sales reports can be used to track subsidized items and total subsidy used.

• If applicable, the retailer can send documentation to the supplier for reimbursement.

• The subsidy can be archived or reactivated later.