Discounts based on the continued volume of purchases, also known as rebates, are often seen by companies as an additional source of profit. However, businesses that want to successfully need a reliable management strategy to ensure success.
There’s no doubt about the fact that a robust rebate program offers great incentives to suppliers, ultimately helping build up your customer base. Unfortunately, the main downside of this approach is the intensive manual labor involved in tracking your rebates.
Here are some best practice tips you can incorporate into your strategy to ensure you’re paying everyone the right amounts:
1. Set the right goals
Before you begin the practical stage of your rebate management, make sure you’re clear on what you’re trying to achieve. Is the focus of your incentives the supply chain? The end consumer? It could be both.
Similarly, decide on whether you want to offer discounts based on repeat purchases or the volume of purchases. Once you’ve answered all these questions, you’re well-positioned to decide on the best type of rebate and discount percentage for your business.
2. Agree on clear rebate terms
For a rebate arrangement to run smoothly, you need to start by establishing the terms of your contract with suppliers ahead of time. By ensuring all the parties involved (your company, the suppliers, and the customers) all have access to the information they need, you avoid future headaches and potential clashes.
3. Make adjustments
Although rebates need to be thought out, they also require ongoing maintenance and need to be adjusted around your distributor’s behavior, customer, date, and location. Our allows you to make easy adjustments when you need to. Rockton Pricing Management lets you break out unlimited adjustments to a single line item on an order without having to make a whole rebate calculation.
4. Automate the management process
The best way to reduce the burden of admin tasks on your employees is through automation. That’s true for many business processes, but especially so when it comes to rebate management. Doing away with manual input in favor of automated rebate tracking will help you reduce risk and streamline your finances.
The benefits of automated rebate management
Despite being potentially time-consuming and admin-heavy, rebates can be extremely beneficial for your business if managed correctly. Having a trusted pricing management tool capable of rebate automation will take the worry off your mind and free up time, so you can focus on .
Our powerful comes with various functionalities that help you automate rebates, track them, and push them to specific GL accounts. Ready to streamline your rebates? Let’s chat!
