A rebate is a financial payback as a reward to the customers to drive sales growth without the reduction of quoted price by offering a discount. Businesses provide rebates to their customers only after they have purchased specified goods at an agreed combination of locations, quantities or values.
Rebate management is an essential tool to assess the profitability of a business.
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Purpose of rebate
- Rebates are intentionally offered to encourage loyalty over a certain time period, which helps to increase trading with specific trading partners.
- These are also used in certain industries to avoid offering a cheaper listed price through fear of diluting a company’s brand.
- Through rebate offerings, companies protect themselves against changed order volumes. It ensures the cheaper price is only given to those customers who have purchased your product rather than offering the discount upfront as a reduced purchase price.
- Rebates essentially hold two perspectives as vendor rebate (also known as supplier rebate) and customer rebate. Although, they differ in the perspective on the rebate agreement between the two.
The greatness of rebate managing software
Companies utilize rebate management software while they develop rebate projects or run rebate programs. It helps them to map out every action and track the results of each defined goal. The rebate system also enables companies to identify patterns and understand the behavior of each client by analyzing their transactions. It creates a positive and transparent relationship that will generate value for your customer and help you increase profit margins at the same time.
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Convenient
Consumers can execute tasks easily and quickly through easy to use interface of a rebate system that combines with intuitive visual cues. The simplified features quickly set up processes, which makes life easier for the user and dramatically simplifies the discount management process.
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Flexibility
The rebate system offers one of the great features of the system that provides the user an option to create different trade agreements using customer/product attribute breaks. It allows the user to set attributes such as customers, products, customer groups, product groups, geography, etc. to manage the trade agreement easily and make it more flexible.
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Fidelity
Businesses don’t need to export data and calculate accruals in various programs; otherwise, it might bring error and inefficiency. Rebate system can solely generate reports and analyze data instantly. It is capable to pinpoint financial impacts and ascertain which discount and incentives offer the best return.
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Automated processing
To carry out quick and accurate calculations for pricing and discounts that have been agreed upon with the customer and are detailed in the trade agreement, the rebate system efficiently manages the process. It also enables inclusions/exclusions limiting manual intervention at order entry.
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Consolidation
Rebate management services are easily consolidated into any ERP (Enterprise Resource Planning) system or any other accounting system, providing a single source of data for your business and allowing data to flow between each system. It also generates invoices.
Wrapping up the best practices in a capable rebate managing system, Vistaar reduces the latency and automates the management process for a business. With sorted calculations of rebates and discounts, the professionals of Vistaar improve the backend effectiveness of any business.
