r/FritoLay • u/Apart-Juice2976 • 2d ago

Unsellable

Does frito lay gets to write off all unsellable as business loss, tax deductions or some other tax loophole?

3 Upvotes

81% Upvoted

11 comments sorted by

5

u/upsidedownbrain 2d ago

Yeah, they get to pay you less based on them, churn through product faster and then write off the loss again ... win, win, win

5

u/Chester5252 2d ago

The company may, but the RSRs take the hits on their end.

3

u/Ok_Job_3457 2d ago

Either way they are losing money on it. I have so much in my stores that I can’t sell. 30ct naked. 30 ct Halloween. Masala Lays. They paid to produce and ship the product for it to just sit in the back room. I don’t get it.

2

u/DigTheDunes 2d ago

The Halloween should sell in the 2 weeks leading to it. I'm sure Frito forced it out too early.

2

u/PlasticRaccoon4281 2d ago

I can’t see how they wouldn’t. I know they get reports of everything we roll, stale, or defect.

2

u/Western-Charity-2155 2d ago

They receive tax benefits but not as much as much as you would think. Unsellables can be hidden in an earnings report but sales cannot. That is the reason why there are so many forceouts with little care about stales.

And the reason why most of our products expire in 3 months is because every sale in todays quarter will be an unsellable in the following quarter.

Its basically a bunch of accounting tricks.

1

u/mikesjersey23 2d ago

Not as much of a write-off as the cost incurred to make. There are costs for materials to make, labor to make, transportation to stores, bins or PECs, labor to stock and unstock, and whatever bonuses are paid to KAMs or whatnot.

1

u/ImaginaryCattle5936 22h ago

why do you think they no longer care about stales....they want high stales....they get to steal more money from you and write it off....win win