Aug 31, 2022

A Beginners Guide to B2B Rebates

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Business-to-business rebates, or B2B rebates, are rebates a seller pays to customers or buying groups. They are popular because they add value to both buyers and sellers, as the buyers get a better price, and sellers create a loyalty incentive. This leads to collaborative goal setting and growth, which is great for everyone!

Managing customer rebates effectively is essential – The first task of rebate management is setting up agreements. Usually, sales teams must closely monitor customer performance in relation to the customer rebate agreement if both sides are to truly gain from their collaborative business planning. If necessary, they will notify clients of anticipated sales shortfalls and actively promote the behaviours required to ensure that the desired number of rebates is achieved. Accruals must then be managed, and customer rebates paid out, before the final task – tracking profitability and true margin analysis, which factors in trade agreements to calculate profits or losses. Designing and agreeing on renewal agreements according to commercial analytics ensures that the renegotiated rebate agreement is fit-for-purpose.


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