Mar 17, 2020

4 Ways Rebate Management Software Can Increase Profits

4 Ways Rebate Management Software Can Increase Profits

Increasing profit margin is the ongoing goal of all businesses, including those in the B2B space. It’s easier said than done, of course and involves (amongst other things) a fine balancing act of managing expenses against income; maximising productivity; developing winning pricing strategies; negotiating good deals with suppliers and creating attractive yet viable sales incentives for buyers.

For B2B organisations, great opportunities to increase profitability can be found by implementing a rebate programme – which indeed is why so many companies do it. However, if not managed effectively, rebate programmes are just as likely to eat into an organisation’s profit margin as they are to add to it. And this is where rebate management software comes in.

Managing rebates is a complex process – particularly if you’re trying to keep track of multiple agreements between multiple B2B partners. Rebates are offered to encourage loyalty and cement long-term relationships between buyers and suppliers.

Often, a rebate promotion will run for a long period of time, with numerous price changes occurring over the period as the relationship develops. Naturally, a massive amount of detailed information is generated throughout a rebate’s lifecycle – all of which must be properly recorded and managed with all calculations performed reliably and accurately for the entire duration.

Unfortunately, many companies still try to use spreadsheets to manage rebates. This is a slow, complicated, and error-prone approach. The fact of the matter is that as a B2B organisation’s rebate programme grows, so too does the amount of data that needs to be maintained – by hand! – on the spreadsheet.

Put simply, spreadsheets just lack the functionality required to manage all this information effectively, and sooner or later lead to companies missing out on claims, inaccurate accruals, and therefore margin erosion.

The good news is that there is an alternative solution – one that makes rebate management simple and convenient and drives profitability. That solution is rebate management software. Let’s consider four ways rebate management software can increase the profit margin for B2B organisations.


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