Retail Deduction Recovery: Getting Paid What You Earned
- Jon Allen
- Sep 17
- 1 min read
Imagine this: you ship a $250,000 order of frozen entrees to a major retailer. A few weeks later, the payment arrives—short by $15,000. The code on the statement says “shortage,” but your warehouse confirms the pallets were shipped in full.
Welcome to the world of retail deductions.
Suppliers lose 2–5% of annual gross sales to deductions, according to industry estimates. That’s hundreds of thousands of dollars for even mid-sized brands. Many suppliers shrug and accept it as the “cost of doing business.” But here’s the truth: most deductions are disputable.
Here’s how retail deduction recovery works:
Identify deductions quickly – Don’t wait until year-end. Weekly audits catch errors before deadlines expire.
Understand retailer codes – Walmart’s shortage claims aren’t the same as Kroger’s compliance fines.
Gather airtight proof – Bills of lading, invoices, case counts. Retailers won’t take your word for it.
Dispute strategically – Focus on high-dollar, winnable claims. Efficiency matters.
One fictional granola bar brand ignored “small” $1,500 deductions for a year. By December, they had lost nearly $20,000—money that could’ve paid for their next retailer launch.
Stop treating deductions as a cost of doing business. Woodridge Retail Group, powered by HRG, helps food suppliers recover lost dollars and protect margins. Reach out today and start reclaiming what’s yours.
