What are back-end rebates (BERs) and back-end credits (BECs)?
Many industries around the world have complex pricing practices. These tend to become more and more complex as the industry becomes more and more competitive. Many creative programs have been created by businesses and their trading partners in order to provide maximum benefit to both parties involved and improve their competitiveness in the market place.
One solution to allow for trading partners to become more competitive and gain market share is back-end rebate or BECs. There are many examples of variables in these agreements, with some based on growth over a certain specified period, volume of product, value of product, certain locations or even a specific SKUs!
Sadly, we don’t have time to cover them all here, but examples of rebate agreements have been covered in detail in another of our blog articles.