Whether you’re a vendor or a customer, rebates will always play a large role in your business.
Whether it’s selling to clients or buying from vendors, rebates are key in driving sales.
But how can you utilise and maximise rebates to ensure business growth?
Like any coin, there are two sides to rebate management. Buy-side and sell-side. So to make things easier, we broke it down into two categories:
If you walk away from this blog with only one tip as a customer, let it be this: always make sure to accrue and claim the rebates you are eligible for in an accurate and timely manner.
Yes, we know. It sounds straight forward.
But it is often these simple things like managing rebates which are the most frequently overlooked and sometimes not that simple, they end up becoming stumbling blocks later on.
So whether your rebates are managed based on purchases, sales or even vendor incentive support, it is key to capture all rebate information properly – from rebate percentages on products to purchases of sale including any eligible tiers and breaks.
When rebates are not claimed and settled in a timely manner, it can create a knock-on effect and impact cash flow. The goal when settling rebates – whether it is weekly, monthly or at end of year, is to provide vendors with robust and auditable back-up, so no disputes occur. These disputes can become time-consuming and will often end in inaccurate settling of payments owed.
Often businesses can end up taking up to three months to settle monthly rebates, slowing down the settling of finances and any cash flow that springs from this, which can cause a handicap for future business plans. Not to mention the administration drain and countless hours required to shed light on any disputes that arise.
For vendors, the key is to be proactive.
Nothing creates better rapport than preparation. When it comes to rebate claim dates, as a vendor you want to be able to push to customers the amount they can claim.
When you proactively calculate how much is owed to clients, while providing them with accurate details of the claim amount, it shortens processing time, only requiring them to review and accept when the payment is ready.
Always waiting until customers send their invoices before you reconcile what you think they are owed can create ill will and cause a breakdown in relationships.
When you are able to go into reclaim time prepared and ready, you are far more likely to increase collaboration.
And collaboration is key.
It ensures additional deals will be brought to the table. Additional deals means:
Often people think that to run a successful business or to ensure growth, a long list of tips and hints are needed.
But often, with no more than one or two uber important principles to how rebates are managed a business can see growth and efficiency as an immediate benefit.