Core conclusions:It is recommended to control the total rebate of dealers at 3% to 8% of the ex-factory price: monthly rebate of 0.5% to 1%, quarterly rebate of 1% to 2%, and annual rebate of 2% to 5%, and the three levels are superimposed no more than 8%; The redemption is mainly based on goods and supplemented by cash. The monthly rebate is monthly, quarterly rebate is quarterly, and annual rebate is in the first quarter of the following year to avoid a one-time large cash refund at the end of the year. The rebate base must be clearly stated in the contract with the collection standard rather than the delivery standard.
One or three types of rebates, each managing one thing
Monthly return solution rhythm: Monthly return can give dealers the motivation to pick up goods every month, which is suitable for new product launch period and categories that need to maintain display fullness. Seasonal return solution to reduce goods: In order to get quarterly gear, dealers are willing to collect goods at the end of the season, which is suitable for factories with low and peak seasons and need to smooth the pace of shipment. Solve large households with annual rebates: Binding annual rebates with the total task completion rate is the main means to retain core dealers. The three types of rebates are not superimposed as much as possible. Improper design of gears and ratios will become loopholes in the price system.
Second and third rebate algorithm and redemption rhythm
| Rebate Type | Algorithm and reference scale | redemption time point |
|---|---|---|
| monthly cash back | Current month's refund amount ×0.5% to 1%, triggered when more than 80% of current month's tasks are completed | Cash in the form of delivery before the end of the following month |
| Ji Fan | Quarterly return amount ×1% to 2%, increasing according to the completion rate of 80%, 95%, and 120%. | Cash before the end of the first quarter to offset the current quarter's payment |
| Return of the year | Annual collection amount ×2% to 5%, up to standard to basic file, excess part calculated by 1.2 times | Settlement within the first quarter of the following year, and two transactions can be split |
Layered design is equally important: Class A dealers with an annual delivery amount of more than 1 million yuan can be superimposed on three levels: monthly refund, quarterly refund, and annual refund; Class B dealers with an annual refund of 300,000 to 1 million yuan will only be given quarterly refund and annual refund; Class C below 300,000 yuan will only participate in monthly refund. The purpose of this design is to concentrate policy resources on dealers who can bring stable returns, rather than everyone has a share and everyone does not pay attention to it, which is equivalent to diluting the profits into price subsidies with no incentive effect.
An example is to illustrate the arithmetic order: a dealer's annual task is 3 million yuan, the actual return is 3.3 million yuan, and the basic annual return ratio is 2%, then the annual return = 3.3 million ×2%= 66,000 yuan; if the contract stipulates that the excess is calculated by 1.2 times, the excess of 300,000 yuan is calculated at 2.4%, and the annual return = 3 million ×2%+300,000 ×2.4%= 60,000 + 07,200 yuan = 67,200 yuan. The difference between the two algorithms is not large, but if the rules are written in the contract, each will not speak separately at the end of the year.
3. Which caliber is used for the rebate base
The three calibers-delivery, invoicing, and payment back-have completely different results with a difference of one word. The delivery caliber is the most lenient, and dealers will get rebates when they pick up the goods. It is easy to argue when encountering returns; the billing caliber is in the middle; the collection caliber is the strictest, which can best reflect the real business quality. It is recommended to uniformly use the collection criteria and add a sentence in the contract: "The rebate base shall be deducted accordingly for returns, exchanges, and discounts" to block settlement disputes in advance.
4. Five clauses that must be clearly written out in the contract
- Achieve caliber and statistical cycle:Depending on the payment date or the receipt date, how to attribute across months and seasons is written down in the annex to the contract.
- Capping and clearing rules:Set an upper limit for annual rebates, and whether the part that fails to meet the standards will be postponed to the next year to avoid unlimited accumulation of rebates into hidden liabilities.
- Payment form and bill:Whether the goods are arrived in cash, whether they are invoiced, the content of the invoicing and the tax treatment shall be confirmed by the finance of both parties before the policy is implemented.
- Termination clause:When the dealer withdraws halfway or the distribution qualification is cancelled, how to deal with the rebates that have been generated but have not been paid must be agreed in advance.
- Price constraints:It is agreed that dealers shall not use rebates as a source of low-price dumping, and the consequences of policy cancellation after breach of contract are clarified.
5. The two easiest pits to step on
There is another detail that is easily overlooked: once the rebate policy is released, it should not be changed at will during the year. Lowering the price halfway will cause dealers to lose trust, and adjusting the price halfway will cause dealers who pick up early to feel deceived. Both situations will directly disrupt the task negotiations for the next year and will also cause the salesperson to lose confidence when explaining the policy.
The first pitfall is to turn rebates into disguised price reductions: quarterly stalls are set too high, and dealers can break through the regional price system in a few months in order to rush for stalls and lower terminal prices. In the end, what is damaged is all dealers 'confidence. The second pit is the accumulation of redemption: monthly, quarterly, and annual refunds are all piled up until the end of the year for settlement. A large liability suddenly appears on the account, and both cash flow and financial accounting are prone to problems. By rigidly implementing the "monthly rebate next month, quarterly rebate next quarter rebate next quarter rebate", these two pitfalls can be circumvented.
6. Common questions
1. Small brands have no bargaining power, so what is the appropriate rebate ratio?
In the initial stage, it is recommended to control the total rebate within 5%, focus on the receipt of goods rather than cash, and on the quarterly refund rather than the annual refund-the incentive effect of the quarterly refund appears faster. When the dealer structure is stable, we will then follow the differentiated policies at the three levels A, B and C, so that the dealer who contributes the most will take away the majority of the annual return.
2. The dealer requires that the rebate be directly credited to the next purchase price. Is it okay?
Yes, this is also the most common practice. It should be noted that the time point of payment for goods is aligned with the book to avoid repeated profits of "calculated once in the rebate and given again in the special price list." When designing the policy, the rebate form and the special price approval form are managed on the same form, so that repeated profits will not occur.
3. Should the rebate policy be disclosed to dealers?
It is recommended to disclose the rules and thresholds (give as much as you can reach), but not disclose the specific figures of other dealers. Transparency in rules can reduce wrangling, and digital confidentiality can preserve negotiation space. There is no contradiction between the two.
For factories that serve as dealer channels, the significance of rebates is not about how much they give away, but about using a set of predictable rules to lock in the delivery rhythm, price system and core dealers.
