Rebate, How To Let Dealers Want To Stop

As a very important means of channel promotion, rebate is widely used in modern marketing.

In order to encourage distributors to purchase more goods and maintain the loyalty of distributors, many enterprises will give their agents or dealers a certain amount of cash rebates, advertising rebates or physical rebates. Enterprises will often include rebate points into marketing costs or sales costs.

Rebates are usually regarded as extra profit by sellers, so they are more stimulative to channel players.

First, let's take a look at the rebate policy made by the United States kitchen utensils to the dealers: the kitchen utensils of the company will make different sales tasks according to the different regions. At the end of the year, according to the number of tasks signed and the completion of the dealers, the 2--4%. profit will be increased to encourage the dealers to increase the single purchase amount, and to pay more than 1 million cash at once, that is, giving cash rebates of 2%.

Some enterprises, regardless of how many tasks the client has completed, have a fixed number of rebates. Some enterprises set up a target task for customers to set up the target task in a piecewise manner, and set up the bottom line task for the client to get the rebate.

The former way is convenient for financial settlement, but because of drought and waterlogging, there is no clear goal, and the incentive to customer sales is often less than that of the latter way, which can not effectively achieve the effect of channel promotion.

The latter is a popular rebate incentive method at present, but the operation is relatively complicated. Many enterprises have great problems in the actual implementation process, but they fail to achieve the desired incentive effect.

Of course, different industries also attach different importance to rebates, and the operation methods are different. Some industries have a considerable amount of rebate. The channel providers pay great attention to it. Some customers even want to earn their profits by spellbound at the cost price, while some industry returns are generally relatively small, and the rebate is just like a dummy. Dealers are indifferent to it and remain indifferent.

In the fierce market competition, in order to win, enterprises often sacrifice eighteen weapons to fight for the market. In today's market, how can we make full use of rebate so that it will not become a tasteless golden pie in the eyes of dealers?

One of the most common methods of enterprise application is annual rebate. Annual rebate is convenient for enterprises and dealers to make financial accounting, easy to calculate the marketing cost, and is easy to refer to the policy factors such as refund and replacement, and to formulate clear sales objectives, and the annual rebate book amount is always relatively large, which has certain temptation to customers.

However, the annual rebate period is relatively long, which is often short of prompt incentives to customers, and it is difficult for the sales targets to be adjusted in time. Moreover, if customers fail to find profits in the first few months of operation, they may lose interest in rebate.

Moreover, after a large market variable of annual rebate, it is not easy to control and lose its meaning.

In the first half of 2003, in the first half of 2003, due to the raging of SARS, many agents in food and clothing industry simply failed to fulfill the sales targets set by the enterprises as scheduled. Their rebates were also severely affected by their enthusiasm for distribution in the second half of the year. However, the pharmaceutical industry and other industries were unexpectedly ushered in the peak sales because of SARS. The sale of a chain drugstore in the first half of the year was three times that of the annual sales contract signed by the manufacturer, according to its annual rebate contract signed with the pharmaceutical factory, in 2003, it could earn a rebate steadily from the pharmaceutical factory.

Under this condition, the chain pharmacies shifted their business focus to another drug factory which used higher quarterly rebates in the second half of the year.

Monthly rebate: the monthly rebate of the company is conducive to prompt incentives to customers, so that customers can see the temptation of rebates at any time, which is equivalent to providing a powerful weapon for the business people. Moreover, it is easier to set a reasonable task target and rebate target bottom line according to the actual market situation and the peak season, and so it is very flexible to operate.

However, there are relatively high requirements for the company's financial accounting, and the amount of monthly rebates is often small, and the temptation is not enough. It is also prone to speculative psychology, which leads to unstable phenomena such as ups and downs in the market.

For example, dealers tend to press hard for the high rebate this month, resulting in a serious shrinkage of sales next month.

The quarterly profits rebate, half a year's rebate: the advantages and disadvantages of the two ways of rebate: some enterprises began to adopt quarterly rebate and half yearly rebate method, which can ensure effective immediate incentives, make scientific objectives and adjust sales tasks and objectives in a timely manner, and make the rebate amount attractive. Besides, financial management, cost accounting, return and other factors can be referred to in a compromise.

Random Rebates: some enterprises will use an instant rebate to reward sales of certain categories of products. In a specified period of time, physical purchases or cash rewards should be made to encourage dealers to buy more goods.

For example, the food industry commonly used to buy ten boxes to give a box activities.

For a company, the specific way to adopt it depends on its actual situation. Different industry characteristics and different market environment should adopt different ways.

For industries with more market variables and unstable dealers, it is more appropriate to adopt a shorter rebate mode, which is conducive to rapidly stimulating dealers to increase investment in the brand's capital and energy, which is conducive to the rapid growth of the market, and also conducive to timely adjustment of sales policies.

In the case of stable dealer teams or long-term cooperation and mutual trust, a longer cycle of rebate can be adopted.

For the more obvious industry in the off-season, it is also suitable to use short cycle rebate mode, which is conducive to stimulating the growth of dealer performance in the off-season.

Other companies with relatively strong market control ability will adopt the combination of annual rebate and monthly rebate, both short-term performance award and long-term goal and task promotion, and more effectively achieve the incentive effect. This way has higher requirements for marketing management and financial management.

Of course, these methods are not absolute, usually for enterprises, the most suitable is the most practical.

Let's take a look at the rebate policy of one year for domestic customers: the monthly profit of the company: the dealer will get more than 1 million of the monthly returns, and the quarterly rebate will be 1% yuan, and the quarterly returns will be more than 5 million, and the annual rebate will be 0.5%, the annual sales will be 15 million, and the 0.5% dealers will be required to pay the deposit. If the task is not completed, for example, the task is 10 million / year, the 500 thousand margin will be reduced to 10 thousand margin.

It is easy to see how smart it is. When you complete the monthly task to get the rebate, the temptation of quarterly rebate comes, and when you get through the difficult task of completing the season, the annual rebate is calling you again; but if you can't finish the task, the consequences will not be optimistic.

Temptations and risks are great, dealers on the ship, often only the bottom of a heart to go forward.

This is the great power of pnational giants.

Two, make a scientific and reasonable sales target, and some enterprises are not accurate enough to grasp the market and aim too high.

Dealers in the sales process found that they could not complete the basic tasks of the manufacturers, and the profits were not expected. Therefore, when other brands were strongly involved, it would easily lead to the pfer of capital and business focus of dealers.

The formulation of the sales task of the company should not only make the dealer pressure, but also be unreachable. The high sales target will cause the dealer to lose confidence and lose interest in rebate.

Too low a sales task is too agreed to achieve, and can not play a role in promoting, lose the incentive significance of rebate, and lead to an increase in marketing costs.

The formulation of sales tasks must be based on the cycle of rebate calculation. Usually, sales tasks should be based on the following parameters: 1, according to the past sales performance of customers.

The sales performance of our company always helps us to set our current goals, and also reflects the ability of our dealers to help us predict and grasp the market.

2, according to the competitor's performance in the region, the performance of the main competitors in the region will help us understand the market better, especially the newly developed market, and the information of the similar competitors can provide a strong reference for setting goals.

3, according to the market's capacity, the market's economic consumption level, consumption habits and population size are important factors to consider.

4, combined with the overall market target and promotion budget.

The company usually has the overall market development goal, the sales task formulation must conform to the company's overall market plan, also must refer to the company investment and the market promotion dynamics.

In the way of monthly rebate or quarterly rebate, there are more variables to refer to, and it is easier to adjust sales tasks in a timely manner, and the tasks made are easier to get close to the market.

And the formulation of annual sales tasks is more prudent, requiring a relatively strong grasp of the market as a whole, so as to maximize the rationalization of the mission objectives.

Three, make a reasonable reward points, ensure the temptation of rebate, and take into account the cost of profit and loss, as an additional reward, first of all, we must have some temptation.

For the businessman who is first, the rebate must reach the sight of his seduction, which makes him willing to strive for it.

Secondly, the scope of reward points must be determined on the basis of strict financial accounting. The profit margins of different industries are different. Therefore, the choice of points should be scientific and prudent.

After all, rebate is a part of the marketing cost. To determine the number of rebate points, we should take into account the following factors: 1, depending on the scale of the industry, the scope of the basic points of the different industries will be different, such as building materials, appliances, automobiles and other large scale industries. The number of points is definitely lower than the rebate points of clothing, food and other categories.

For example, the rebate policy of SHARP audio is (for franchised franchisees): the first time the dealer will receive 100 thousand of the goods, the immediate rebate will be 5% for advertising and promotion expenses, and then the 100 thousand will be rebate 5%.

In the year when the goods reach 1 million, the rebate point is 8%. The rebate point is relatively high, because the overall profit margin of the audio industry is relatively high.

2% of the annual profit margin of the dealer. The usual way is to take a piece of candy to entice an adult.

For example, it would be tempting to take thousands of dollars rebate to seduce a dealer who has a net profit of several hundred thousand a year.

Usually, the profit margin level of the industry should be taken into account in the formulation of the rebate. The relevant data show that the amount of rebate should not be lower than 8% of the profit of the dealer.

3, referring to competitors' rebate points, the strategy of marketing should pay attention to knowing one's own and the other. The rebate policy must have certain advantages compared with the main competitors in order to occupy more initiative and give full play to the driving force of rebate.

Once the strategy of rebate has been worked out, the marketing personnel should grasp the important time periods of the performance according to the characteristics of the enterprise's rebate, and follow the example of the business, so that the golden pie can be effectively hung on the neck of the dealer so that they can eat and eat, and they are willing to devote themselves to the pie.

Only in this way can we guide distributors to fully distribute products, maintain and enhance the loyalty of distributors, and achieve the effective goal of channel promotion.