Apr 28, 2020

How Rebate Structure Affects Your Margin

rebate structure

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.

Rather than granting discounts upfront, a vendor rebate programme mandates that the buyer has to earn the discount. And the truth is that many businesses are more concerned by the loss of a sale than by ensuring every sale is profitable. An effective rebate management programme should be designed to both boost business and protect margins in the process.


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