Rebate management and B2B collaboration blog - Enable

Rebate vs. discount: what are the differences?

When setting prices for your products or services, you always need to keep in mind the volume of sales you will get, the profits you will make, and even the way your brand is perceived.

Rebates and discounts are distinct forms of cost reductions which directly or indirectly promote the overall sales of a business. Both pricing terms may sound similar, however, there is a considerable difference between discount and rebates which we explore in more detail below.


Discounts

What is a discount?

Discounts are typically applied at the point of purchase to reduce the buying price: when you get a bill, you pay the discounted value. It’s all very immediate. The discounted price is visible as of the precise moment that the purchase would have been made and therefore offers immediate satisfaction.

6 min read

Why your business needs a centralized deal repository

With 80% of B2B transactions governed by contractual agreements, contracts are the foundation of nearly every trading relationship and should seek to define and mitigate risk. Contracts also provide the basis by which companies ensure compliance with regulatory and financial accountability requirements. More importantly, agreements should be documented.However, the number and complexity of those contracts are growing. According to IACCM, the average Global 1000 corporation maintains over 40,000...Continue reading

Year end revenue recognition — rebate accruals

How was your last year end? We’re not referring to the actual outcome, but the process of getting your year-end figures together.

If you’re in the fortunate position of being able to match each supplier invoice to an order at the right price, then perhaps your year-end is simply a question of dealing with a volume of transactions? But for those in the building supplies sector, those working in buying groups, and many wholesale distribution companies, revenue recognition is hampered by supplier rebates, retrospective discounts and other promotions.

In fact, in industries where rebates are an important part of normal trading, the rebate accountant is often the key to having a true picture of your profits and losses.

6 min read

Reasons to digitalize your deal management

To survive and succeed in today’s changing business landscape, companies need to evaluate their current processes and realise that digitalization is transforming how organizations in every industry carry out their operations. Forbes has reported that 90% of global businesses have kicked off a formal digital transformation initiative of some form. The concern for many companies is that they’ve already fallen behind, or they are too late to get started. But that is certainly not the case.One of th...Continue reading

Supplier vs vendor — what’s the difference?

In the supply chain and the rebate world, you will often hear the terms supplier and vendor used interchangeably when supply chain roles and duties are discussed. Even here at Enable we sometimes call supplier rebates, vendor rebates. They both supply goods and services, but there are certain attributes that make each one a distinct term in the supply chain world, which we will discuss in more detail below. Definition of vendor A vendor is someone who purchases products from manufacturers or di...Continue reading

The purchasing power of a buying group

When you become an independent business owner, you’re always thinking of ways to reduce your expenses, manage your finances better and stay ahead of the competition. One of the best ways to solve all three is to join a buying group also known as a group purchasing organization (GPO). A buying group handles the payments, sourcing, contract and supplier management for you, while leveraging the purchasing power of the group to get better pricing than you could negotiate if you were independent. Bu...Continue reading

May ’20 update: Automate your data snapshots with the new financials app

Enable is committed to ensuring our software is constantly being updated and improved. To achieve this, we release a new DealTrack update every six weeks.

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Customer rebates vs. supplier rebates — what you need to know

When it comes to rebates there are two sides of the story: customer rebates and supplier rebates. How to differentiate the two can cause confusion. So, to explain the difference between customer rebates and supplier rebates we will take a different approach and think of them like a tango, rather than a war.

What are customer rebates?

Customer rebates is a term applied to the business process where a company is managing the rebate liabilities they have out to their customers: rebate monies they’re going to pay to their customers at some point in the future.

Read: The complete guide to B2B customer rebate management

What are supplier rebates?

Supplier rebates is a term that is used where a company is managing their income stream of rebates that will become due in, from their suppliers.

Read: Why the supplier rebate model is broken — and how to fix it

8 min read

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