FOC (Free of Cost)
A trade scheme in which the buyer receives additional units free of cost upon purchasing a qualifying quantity.
Full definition
FOC stands for Free of Cost, a trade scheme where extra units are shipped free alongside the paid order. The classic form is 'buy 10, get 1 free' or 'buy 2 cases get 1 case free.' FOC is the most popular promotion format in Indian FMCG because it drives volume without lowering the sticker price of the product.
FOC schemes are particularly effective for new product launches (sampling via the trade), liquidation of slow SKUs, and festival pushes. The free SKU can be the same as the paid SKU (equivalent to BOGO) or a different SKU for cross-selling, e.g., buy 10 cases of shampoo and get a free conditioner.
Under GST, free supplies to related parties can attract tax on input credit availed, so a proper scheme engine tags FOC units distinctly in invoices and feeds them into compliance reports.
Real-world example
A snacks brand runs 'Buy 24 cases, get 2 cases free' across all Tamil Nadu distributors for the Pongal week.
Where it applies
Applicable industries
This term is relevant across the following SpireStock-supported industries.
How SpireStock handles it
Related SpireStock features
The concepts described above are implemented end-to-end in these product modules.
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Related terms
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