Palmer and Harvey (P&H) is hoping to sell a greater volume and mix of goods with the launch of a new incentive scheme.

The initiative, which centres around tobacco pricing, rewards those retailers who boost their spend on non-tobacco outers (including ambient, chilled and frozen), with savings on cigarettes, pipe and rolling tobacco products.

P&H marketing director Richard Hayhoe said the scheme was one of the biggest shake-ups of tobacco pricing in P&H’s history.

“We’ve seen how numerous factors are making it really tough for independent retailers right now. This new pricing will help retailers grow their businesses.”

The best outer price, Band A, will be available to retailers ordering more than 250 outers and spending more than £2,499. Retailers ordering less than 249 outers will still benefit from the best outer price, but there will be an additional tobacco tariff, ranging from 20p per thousand cigarettes for orders of 175-249 outers (Band B), to £1.20 for retailers ordering between 0-49 outers (Band G).