Earned rebates for distributors improved by >25%
A group of distributors of commercial plumbing products is using the Rebate.ai solution. Distributors often fall into the SMB market category, with annual procurement expenditure capacities ranging from $200K to $15M. These are generally family-owned enterprises with little technological experience.
The distributors come together to form a buying group; such a group aims to negotiate better rates from manufacturers. This allows small-time distributors to compete on pricing with national distributors.
Rebate is the cashback/savings that a person/ corporation receives when buying a certain quantity of merchandise. It facilitates the cost reduction of a product/overall service in the future. This set-up safeguards the interests of both manufacturer and distributor. The rebate percentages are negotiated with the manufacturers by a buying group executive.
Attainment Tracking provides distributors with the necessary visibility to make the most of their rebates. E.g., if a 5% rebate is provided on a $5000 threshold and the distributor has made a purchase of $4800, attainment tracking prompts them to make another $200 transaction within the specified time to be eligible for a $250 cashback/rebate. This provides distributors with an alternative revenue source, which helps boost their total profitability.
Missed Opportunity Identification gives distributors alternatives for purchasing related goods and earning rebates within the group. E.g., if a distributor buys $5000 worth of fittings from a manufacturer outside the buying group, a manufacturer inside the umbrella of the buying group may provide a 4% rebate on fittings. This translates to a $200 profit for the distributor at the end of the year, which was previously overlooked.
The distributors who were onboarded into Rebate.ai earned 27% higher rebates than the non-onboarded users in the same buying group. On average, for each onboarded distributor, this equates to a savings of $14000 to $20000.