Rebates

Vendor rebate

Also called: Supplier rebate · Buy-side rebate · Purchase rebate

A rebate you earn from a supplier based on what you purchase from them.

Vendor rebates reduce your effective cost of goods, which means they belong in every pricing and margin decision — and because they settle quarterly or annually, they usually are not in any of them.

The characteristic failure is portfolio scale. Managing one agreement well costs roughly the same effort whether it is worth two hundred thousand dollars or two thousand, so businesses with hundreds of agreements manage the top twenty and manage the rest by memory. The tail is where the unclaimed entitlement lives.

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See the term in the product.

Thirty minutes, walking the mechanism you just read about through modelling, accrual, claim and settlement — against examples close to your own programmes.