Rebate accounting is notoriously time-consuming and complex. Only the best rebate management software can automate key tasks, track deals and automatically calculate rebates in real time.
Choosing the best software will enable you to maximise the effectiveness of your programmes and drive business growth.
Managing rebates can be a real pain point for companies with multiple rebate agreements in place. Nonetheless, it is absolutely imperative that rebates are managed accurately as the income received can often be the difference between profit and loss.
Times of upheaval are always times of radical change. In response to the COVID-19 pandemic, many organisations around the globe have suddenly found themselves in a position where they’ve had to introduce remote working policies to protect their staff and customers.
Accessing supplier rebate programmes is a fantastic way to drive revenue and improve profit margins. However, rebate management is inherently complex and you need powerful rebate management software to do it successfully.
When it comes to pricing strategies and financial incentives, a volume incentive rebate programme is undoubtedly a best practice in itself. Why? Because if you’re relying solely on upfront discounts to drive volume-based sales, then you’re not protecting your organisation from buyer gaming and overpromising, nor actually incentivising your customers to make higher volume purchases in the first place.
When implemented properly, B2B rebate programmes are one of the most powerful pricing strategies for boosting sales, improving customer loyalty and influencing desirable customer behaviours.
No matter if you’re looking to incentivise and reward buyers for making large purchases, generate demand for high margin products, move old inventory, or drive revenue or volume growth in a particular product line, your B2B rebate programme can help you do it all.
The supply chain is a complex beast – especially as organisations around the world are now looking to global supply chains in order to source materials more cost-effectively. Many challenges emerge with such strategies, including how to align incentives such as rebates to the benefit of the whole supply chain.
Effective pricing is a continuous balancing act. Prices need to be low enough to attract and retain buyers, yet high enough to cover costs and turn a profit. Fail to strike this balance and you either lose customers to rivals who offer better rates, or you end up reducing your margins to the point where any sales you make are no longer profitable. Pricing strategies should aim to maximise revenue and profit, attract new buyers and improve customer loyalty.
Rebate accountants have always had a tough job correctly accounting for rebate accruals. In industries such as construction, automotive, pharmaceuticals and FMCG where rebates are an important part of trading, the sheer volume of deals to handle and the level of complexity involved with each of them, can easily result in incorrect calculations of amounts due.
Rebates are a powerful tool for Vendors to use to boost sales, lock in buyers for the long term, encourage incremental growth in order volumes and increase repeat purchases.
Naturally, discounts of any kind affect profit – and rebates are no exception. And so, rebate structure is paramount to ensuring your vendor rebate management programme is profitable.