Heel ties (vertical and horizontal)

Sales pegs are contractual agreements between companies to influence the sales of their products. A distinction must be made between horizontal and vertical paragraph bindings:

Horizontal paragraph ties exist when companies of the same economic level adhere to common guidelines. Such guidelines can relate to production standards, output quantities, sales areas as well as delivery and / or payment conditions that have been agreed by manufacturers in an industry within the framework of a cartel. A well-known example is the textile industry, in which there are uniform payment terms based on a condition cartel.

Vertical heel ties sind vertragliche Vereinbarungen zwischen Unternehmen verschiedener Wirtschaftsstufen, z. B. einem Hersteller und seinen Groß- und/oder Einzelhändlern. Der Hersteller verfolgt damit das Ziel, den Verkauf seiner Produkte durch die Intermediary zu steuern. Vertikale Absatzbindungen werden in der Praxis als Vertriebsbindungen bezeichnet. Bekannte Vertriebsbindungen sind:

  • Agency system (z.B. Telefunken und Mineralölkonzerne)
  • Depot system (e.g. coffee and cosmetics)
  • Franchise system (e.g. Coca Cola and Eismann)
  • Authorized dealer system (e.g. Benetton, Ford and VW). The authorized dealers of motor vehicle brands can be single or multi-company dealers.
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