When relying on distributors to get your products in the hands of your customers, there are a few things that you need to consider.
What are you doing to entice your distribution partners to sell?
And how will it benefit you?
Offering incentive programs for distributors can make a difference when you aren’t getting the results you need to meet demanding sales goals.
Distributor Incentives – Rebate Agreements
For decades, many large companies have relied on distributor rebate agreements to help drive sales. A distributor rebate allows partners to receive money back from a purchase (that meets specific requirements) after the sale is complete. Companies commonly use distributor rebate agreements when promoting products to reward distributors who purchase more. Larger purchases with rebate agreements tend to produce larger margins. Distributors often see rebates as a way to keep costs low while enhancing profitability.
While rebates lower cost and increase profits for distributors, there are also benefits to implementing rebate agreements for vendors.
Top 5 Benefits Of Adding Distributor Rebate Programs
Here are the top 5 benefits vendors see from distributor rebate programs:
- Build Stronger Relationships – Successful and efficient handling of distributor rebate agreements can help build stronger relationships by encouraging collaboration, communication, and trust. When two companies can effectively work together to reach sales goals they are likely to continue the relationship.
- Increase Brand Loyalty – Along with trust and stronger relationships, distributor rebate agreements can develop brand loyalty. A distributor may feel more loyal to a vendor when the vendor is willing to work with them to win business. Brand loyalty frequently results in repeat purchases.
- Get Products in More Hands – Distributors who trust and have strong relationships with vendors are more likely to go out of their way to help when vendors are trying to push their products to new customers. In addition, when new customers seek out loyal distributors they are also more likely to suggest your products vs. competitors.
- Boost Profits – Rebates help keep distributor costs low with higher margins while building loyalty. At the same time, low cost and brand loyalty lead to repeat purchases and larger order sizes. As you become a preferred vendor for certain product categories, your profits will inevitably increase as well, even if you do not provide rebates or discounts all the time.
- More Data Collection – Rebates also offer a unique opportunity to collect valuable customer data. Whether that is where customers buy your products, how much they are ordering, or whether they received the rebates. Understanding this data can help you guide future business partnerships and adjust your incentive programs to be more effective.
While there are many incentive programs to choose from, distributor rebate agreements can be the deciding factor in profits or losses for a company if they aren’t handled properly. Accurate rebate management must be a priority.
Automate Your Rebate Management Process With Computer Market Research (CMR)
With 37 years of delivering cost-effective channel management solutions, we empower businesses to increase productivity, reduce overhead, inspire channel programs, strengthen partner relationships, and advance decision-making processes.
CMR’s Rebate Management program eliminates the challenges associated with monitoring and recording while maximizes sales results and providing incentives for targeted promotions. Additionally, offering channel partners visibility into sales tiers at the company or representative level. Our expertise in automating reporting processes eliminates the challenges manufacturers face with rebate management and program oversight.
Our Rebate Management program includes:
- Web-Based Tools
- Customizable Options
- Auto Calculation
- Flexible Setting
- Multiple Reporting Capabilities
- 24/7 Real-Time Status Reports
- CRM Integration
Request a demo today to see how our Channel Rebate Management software could work for you.
You can also contact a CMR Rep with any questions at (702) 247-1120 or email@example.com.