Monday, October 25, 2010

Fun rebate


Formulation of principles

1. Limit the principle of appropriate

Rebate to be able to promote the sale, the price can not interfere with normal profit margins. Doing so will result in the circulation or the second installment of a group of business for more access to the rebate, while the transfer price profits.

In general industry, rebate profit margins generally larger than the price; in liquor industry will have to smaller.

Product introduction of the rebate profit margins are smaller than the price, the product will have to major in maturity.

Manufacturers provide rebates for a number of profit margins than the price of larger, for the second installment is provided by small or even zero.

2. Timely to honor the principles of

Rebate to be fulfilled in time, or only can not play the role of sales promotion may also discourage the enthusiasm of dealers.

3. Supporting the use of the principle of

Rebate to and price, promotion, etc. supporting the use of profits generated, considering.

4. Encourage the principle of combining with the constraints

Rebate mechanism to cope with some constraints, such as not allowed to cross-sell, and not to sales price reductions, rebates or reduced profit margins, and so on until canceled.

How

1. Settling

Rebate generally monthly, quarterly and annual basis. Rebate on the basis of sales development generally; in rebate with the nature of certain dividends, tend to be more vague, and different distributors under the agreement, may be different. On the number of operators to use more in rebates, while the broader use of the second installment on rebates.

No matter what kind of rebates, should be settled in the time to complete, otherwise it will affect the distribution of part of the enthusiasm generated complaints.

2. The development of standards

Rebate of the development of standards to be clear on the different brands, variety, quantity, grade, size of the rebate to formulate a different, not vague, let distributors know very well what product, how much of the rebate to which species return space.

For example, A brand new stage of market Distribution Issues, monthly rebate of 10%, of which a group of business and business in accordance with the 4:6 split into batches; growth period, monthly rebate of 8%, of which a group of business and batches into business in accordance with the 3:7; mature period, 5% rebate on which a group of business and business in accordance with the 2:8 split into batches; decline of 2% on the rebate, including a group of business and business in accordance with a second installment : 9 divided.

Develop a group of developers and business rebates batches when the ratio, a reference to the situation of competing brands, the second to consider the reality of three to consider the formation of undesirable phenomena, such as changing commodity, low-cost selling and so on.

3. Cash form

Different dealers to develop different forms of cash, following table:

Above in the form of practical application to flexible use.

4. Conditions

To prevent the rebate as "Beyond the Mark", "smashing prices" support forces in the development rebate, be sure to consider adding some additional conditions. For example, on a number of companies allowed to cross-regional sales, and not to payment default; on the second installment sales business to non-price cut, one-second issue of business to jointly safeguard the market, manufacturers must not violate the provisions. Otherwise, once discovered, are reduced in accordance with the provisions of the Transfer of profits until canceled.

5. The implementation process should pay attention to

鈻?rebate set to be elastic combination of standard, high and low order. To enable all low-level dealers to get the rebate, the rebate to make high-level distributors can be achieved through hard work.

鈻?The size of the rebate should be moderate. FMCG rebates should be controlled within 10% of the purchase price, the blind pursuit of expanding the rebate to stimulate and maintain the sales price may squeeze profit margins, so that the whole chaotic price system, leading to price cuts, frequent changing commodity.

鈻?cash rebates to diversify. Stepped rebate could lead to fire sales or off-site sales, in order to eliminate this problem, we usually start to get the maximum forecast dealer rebate, then the cash standard limits the rebate under this limit in cash and product paid; and above this limit, then converted into non-cash and other non-physical rewards of this product.

鈻?Implementation of the standards strictly. A lot of the rebate is very well designed, it is in very different, which we must be eliminated.






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