Manufacturer Rebate Programs ... Are They Worth The Cost?
Like so many things in life, the answer is yes, no and could be.
Over the years, however, programs grew. Most manufacturers now offer similar programs. While some only focus on growth, most offer some type of financial inducement for maintaining a purchase volume or "first dollar" business (a rebate is earned for each dollar purchased from the manufacturer, regardless of performance). While times were good, this system worked for distributors and manufacturers. Distributors focused their efforts on those manufacturers who were important to their operation and/or those manufacturers who offered programs where the distributor could earn from the first dollar (typically the way buying groups negotiate their programs). Manufacturers focused on customer retention and incorporated a growth element. The financial aspect of the relationship worked.