The Deduction Census Beta
Pixels and Clicks research · 2026 edition · collecting submissions

Nobody publishes their deduction rate. We think that should change.

Every supplier knows their own deduction rate. Nobody knows what normal looks like. This is the start of that answer: an anonymous, industry-wide benchmark seeded with SEC data and built on supplier submissions.

58Public CPG companies in the financial context, from the same SEC pipeline behind The Float.
-3 vs 75 daysMedian cash cycle: over $10B vs $1B–$10B. The wider the cycle, the more each deduction point costs you.
Year 1First edition. Fifty submissions make it credible. Two hundred make it definitive. Submit yours below.
The problem

You know your deduction rate. You don’t know if it’s normal.

You lose 2% of gross sales to retailer deductions. Is that a rounding error or a five-alarm fire?

You dispute 40% of chargebacks and win half of those. Is your team outperforming, or leaving money on the table?

There is no published answer. Deduction rates live in ERP systems and finance spreadsheets. Consultants quote fragments. Software vendors cite their own user base. Nobody has the distribution across the industry.

Your CFO asks whether 3% is high. Your broker says everyone deals with it. Your retailer says your rate is worse than peers. None of them show you the data, because the data doesn’t exist in any public form.

We are building it, one anonymous submission at a time.

Benchmark

Where do you stand?

Enter your numbers. The calculator shows what your deduction rate costs you in working capital right now, and the chart places you against every submission we’ve received. Nothing is stored or sent until you choose to submit.

Trailing 12 months. Total deductions before recoveries, divided by gross sales.

$0
estimated annual deduction expense
Gross deductions$0
Disputed$0
Recovered (disputes won)$0
Net deduction cost$0
Net deduction rate0%
Recovery rate (% of gross recovered)0%

Deduction rate distribution

Your marker is the teal line. The chart fills as suppliers submit.

Definitions

What we measure, precisely

A benchmark is only useful if every submission measures the same thing. Here is exactly what each field means.

Field Definition What to include What to exclude
Deduction rate Total deductions taken on remittances in the trailing 12 months, divided by gross sales to that retailer in the same period. Before recoveries. Shortage claims, compliance fines, OTIF penalties, pricing discrepancies, receiving adjustments, freight chargebacks Promotional allowances, trade funds, slotting fees, co-op, volume rebates, early-pay discounts. These are negotiated costs, not operational deductions.
% disputed Share of gross deduction dollars for which you filed a formal dispute or claim in the trailing 12 months. Any deduction you formally contested through the retailer’s dispute channel (APDP, Vendor Central, etc.) Deductions you wrote off without filing, or ones auto-resolved by the retailer before you acted.
Win rate Share of disputed deduction dollars where the retailer credited you back (full or partial), as a percentage of dollars disputed. Full reversals and partial credits on disputes you filed. Credits that arrived without a dispute (auto-corrections), or open disputes not yet resolved.

The line between “deduction” and “trade spending” is the hardest boundary in CPG finance. If your company tracks promotional billbacks and shortage claims in the same bucket, separate them before submitting. If you cannot separate them, do not submit. An honest gap is better than polluted data.

Context

Why the same deduction rate hits differently at different scales

Public companies don’t break out deduction rates in their 10-Ks. But they do report the working capital environment that deductions live in, and that environment is sharply different by company size.

Working capital by revenue band, 58 public CPG companies

A wider cash cycle means each deduction point locks up more working capital. A 3% deduction rate on a 75-day cash cycle costs more to carry than 3% on a negative cycle.

Revenue band Companies Median days payable Median cash cycle
Over $10B 14 105 days -3 days
$1B–$10B 32 50 days 75 days
$500M–$1B 5 43 days 63 days
$100M–$500M 6 30 days 45 days
$10M–$50M 1 37 days 84 days
Source: SEC 10-K filings, latest fiscal year. Full data and methodology: The Float. Public companies are concentrated in the larger bands because sub-$50M CPG brands are mostly private.
Contribute

Add your data to the census

Anonymous. No company name, no identifying details. We publish only aggregates, never individual submissions. When a segment has fewer than five submissions, we suppress it entirely.

If you leave an email, you get the full results PDF when the 2026 edition closes. That’s the only reason we ask.

Your company (anonymous)
Deductions

You can submit an overall rate, per-retailer rates, or both. See the definitions for what to include and exclude.

All retailers combined. Before recoveries.

Break down by retailer (optional, more useful)

Per-retailer data makes the benchmark sharper. Same definitions as above, scoped to one retailer.

Deduction mix (optional)

Roughly what share of your total deduction dollars falls in each category? Does not need to total 100%.

Get the results (optional)

Optional. Used only to send the annual report. Never shared or sold.

Method

How the census works

What we measure

Gross deduction rate: total operational deductions (shortage, compliance, pricing, receiving, freight) as a percentage of gross sales, before recoveries, trailing 12 months. Promotional allowances, trade funds, and negotiated rebates are excluded. See the definitions table above for the full boundary.

Both rates are self-reported. We do not audit submissions. Implausible outliers (a 40%+ deduction rate, a 100% win rate on more than token volume) are flagged and excluded from published medians.

How we protect anonymity

No company name or identifying detail is collected. Revenue is banded, not exact. We publish only aggregates: medians, percentiles, distributions and counts, never individual submissions. When a segment has fewer than five submissions, we suppress it until the count grows.

The financial context

The working-capital data (cash conversion cycles, days payable) comes from the same SEC 10-K pipeline behind The Float. Those figures cover 58 public companies and frame the cost environment. Deduction rates come only from submissions.

Who is behind this

Pixels and Clicks is a retail compliance diagnostic practice. We built The Float and the Walmart Dependency Tracker from SEC filings; the census extends that research to the one number filings don’t carry. We have no software to sell and no reason to skew the results.

When the next edition publishes

The 2026 census stays open through December 2026. We publish the first results summary at 50 submissions and the full annual report in Q1 2027. Every submitter who left an email gets it first.

Use this data

When published, the aggregate results will be free to cite with a link to this page.

Pixels and Clicks (2026). The CPG Deduction Census, 2026 edition. https://pixelsandclicks.net/cpg-deduction-census-2026.html.
Related reading

More on deductions and cash flow

Next step

Know your rate. Now find where it comes from.

The census tells you whether your deduction rate is normal. The assessment traces each open deduction to its root cause in fourteen days, from $2,500.