B2B rebates can amount to hundreds of thousands of dollars a year in savings, but first, you have to capture them.
What’s the best thing about rebates? As a buyer, you get a price break on a product you’ve purchased. As a seller, you have a guaranteed sale. What’s the worst thing about rebates? For buyers, that would be losing out on that price break because you didn’t follow through on claiming the rebate. That’s true for the B2C world. However, where it can significantly contribute to (or detract from) the bottom line is in the B2B universe. For some enterprises, rebates can amount to hundreds of thousands of dollars a year in savings, so it’s essential that those rebates be captured. But handling the tasks that go into tracking, paying, and collecting those rebates can be troublesome for both the buyer and seller.
B2B rebates can be offered monthly, annually, or off the individual invoice. A number of variables can be used by sellers to calculate the amount of the rebates. But in the end, the rebate only has value to the customer when it’s claimed, and for businesses, this is often an issue. In a company where thousands, if not tens of thousands, of transactions occur over the course of a year, manually keeping track of what rebates are available and when they have to be claimed, and then completing the proper forms can be a huge burden for companies. Plus, when all of this is handled in a paper- and labor-intensive environment, visibility is virtually non-existent.
It’s not that simple for the seller either. Either the manufacturer, or its distributor, needs to go through the processes and costs of paying the rebates back to the buyers. And again, in a paper- and labor-intensive environment with little to no visibility, that task can be quite costly and time-consuming. That’s why buyers and sellers can benefit from automating the process by looking for a solution provider with experience in capturing and fulfilling rebates; one that will provide connectivity and visibility into the entire process.
By digitally connecting all parties the right solution makes data accessible to the parties involved, 24/7. That’s not only good for the buyer, who is able to then claim the rebate within the timeframe and conditions required. It’s also good for the seller, who can notify buyers when they are either close to achieving a higher rebate status or close to losing one. This can be an almost impossible task for suppliers who sell to buyer groups, with the added complexity that aggregate numbers brings to the table, if the process is handled manually. But when this complexity is handled automatically, the buyer gets the cash they expect and the seller gets the good will and extended customer relationships necessary for continued growth. Plus, by being able to track sales over time, sellers are able to reward their most loyal customers with better rebate offerings.
Don’t let time-consuming, labor- and paper-intensive processes keep you from getting the rebates you’re entitled to.