The Deal Economy - Page 4 - Enable

Back to blog

The Deal Economy

Our products drive profitable growth with your trading partners. We’re rethinking the way the deal economy works.

3 ways rebate software can help to increase the profitability of your business

The Deal EconomyMay 9, 2019

For any business to be successful, it’s vital that a profit is made enabling continued success and to provide opportunities for growth and development. But, making a profit isn’t always as easy as it may seem. Once all the necessary expenses and costs have been paid out, its then essential enough sales have been made just to break even, let alone have anything extra to realize a company’s ambitions.

Although this can be extremely challenging at times, it’s also possible to increase the profitability of your business by spotting opportunities. Collecting rebate agreements on time, consistently and accurately could be one of these opportunities. Rebate management is the process of recording supplier agreements, tracking purchases and sales against those agreements, and managing accruals and rebate claims in a timely manner.

5 min read

Excel errors — why spreadsheets are so dangerous for rebate accounting

The Deal EconomyApril 30, 2019

Finance and accounting departments tend to rely on Excel spreadsheets to manage a growing business’s financial data because they know it, they understand it and old habits die hard. But human entry error is always a risk which we saw a few years ago when news about Excel miscalculations at JP Morgan rocked spreadsheet users’ worlds. A simple cut and paste excel error cost JP Morgan $6 billion and resulted in dramatic headlines like “Why Excel is the Most Dangerous Software in the World”, but it...Continue reading

Forecasting rebates? Here’s 4 challenges you may come across.

The Deal EconomyApril 25, 2019

Whatever industry you are involved in, forecasting the potential earnings for your business is essential in preparing for the ups and downs of the year ahead. But how do you make decisions about your budget, such as how many employees you can afford to hire or how much you can spend on marketing if you don’t know how much revenue and profit you’ll be generating?

Accurate forecasting and accurate accruals are vital to success within your business to ensure that you are aware of what the future is likely to hold so that you can appropriately allocate resources to assist in key areas. For many businesses, forecasting is not a focus and even for those that make a point to forecast their future, various challenges can limit the accuracy and benefit of these forecasts.

With this in mind, let’s dive in to the four common challenges of forecasting rebates.

Rebate forecasting challenges

  1. Many in-house forecasts are too basic.
  2. Renegotiating the best deals in the future.
  3. Forecasting is too manual.
  4. Forecasts are not updated throughout the deal.

7 min read

The rebate data cheat sheet: what are your supplier rebate accruals based on?

The Deal EconomyApril 11, 2019

Supplier rebate agreements are often based on the volume of purchases of particular products. This means that in order to accurately calculate the rebate that should be accrued or collected, and to minimize the chance of disputes with suppliers it is crucial that your rebate calculations are based on accurate data.

When choosing which data to use for your supplier rebate calculation, you will likely be considering the three following options. Unsurprisingly, each of these choices have advantages and disadvantages to consider depending on your internal systems, business processes and priorities.

Let’s dive in and take a look at the pros and cons.

5 min read

5 rebate challenges facing buying groups and their members

The Deal EconomyApril 4, 2019

Safety in numbers is the well-known hypothesis that, by being part of a large group, an individual can reduce their risks and is, therefore, more likely to succeed. In the same way, buying groups typically form to provide smaller independent companies greater buying power by consolidating their purchases. While this structure can be hugely beneficial, we’ve found that it usually adds complexity to the process of managing retrospective rebates.

Due to the number of members changing and volatility of small business, there can be a great variance in the purchase volume from time to time. This means that the buying group as a whole can often struggle to commit to consistent large purchasing volumes which reduces buying group negotiating power and will lead to suppliers offering lower discounts.

Rebates often enter the conversation as a mutually beneficial method, offering tiered discounts based on actual purchases. Whilst rebates are the best solution for this problem in the eyes of the buying group, supplier and buying group members, they create new challenges for all involved. This can lead to large amounts of time and energy — that could be better utilised elsewhere — being unnecessarily wasted.

Let’s dive in to the 5 rebate challenges that are faced by both buying groups and their members:

5 min read

What is special pricing collaboration?

The Deal EconomyMarch 7, 2019

With ever-more complex special pricing agreements being created in an already vast and competitive market, the ability to efficiently maintain pricing flexibility between manufacturers and distributors has become essential.

Both supplier and customer rebate have been prominent for many years. Their aim is incentivizing purchases and sales and protecting profit margins. A focus on rebate management has helped merchants, buying groups, wholesale distributors and retailers to drive mutually profitable growth with suppliers whilst improving cash flow and reducing risk.

US-based research has shown that alongside rebate agreements, manufacturers and distributors are increasingly collaborating around ‘special pricing agreements’, commonly abbreviated to SPAs, and often referred to as ‘contract support’ in the UK building materials sector.

By necessity, SPAs are collaborative arrangements whereby manufacturers and distributors assist each other for mutual benefit. Initially these types of agreements entered the market to leverage scale, but they have since evolved into a more widespread tool used to grow sales and market share by allowing trading partners to work together in offering a more competitive price than their rivals.

11 min read

The trouble with reconciling special pricing agreements (SPAs)

The Deal EconomyDecember 18, 2018

Special Pricing Agreements (SPAs) are often considered a necessary evil in most industries. Whilst they can assist you and your trading partners in winning business over your competitors and allow you to enter new markets, the accompanying complications of managing SPAs can leave you wondering if they’re really worth it. Some businesses we have engaged with wish to cease dealing with special pricing agreements due to the burden of managing them! There is no doubt that special pricing agreements...Continue reading

Supplier collaboration in the building materials sector

The Deal EconomyDecember 12, 2018

We learn about collaboration from an early age. As children we quickly learn that we need to collaborate with teachers, classmates and team players in order to be successful. "There's no 'i' in 'team' is a common mantra in sports and work teams. And "supply chain collaboration" has been a hot topic for decades. Despite that, there are very few systems that enable wholesale distribution companies and their suppliers in the building materials sector to truly collaborate on their trade agreements....Continue reading

Using special pricing agreements to increase your profit margins

The Deal EconomyDecember 4, 2018

SPAs (Special Pricing Agreements) are a common vendor program in many industry sectors. The program gives a special product discount for verified sales to an ultra-competitive event where in-stock discounts can’t secure the order. Special pricing agreements trace their roots back to the 1970’s but have shown significant growth in the past decade. As B2B e-commerce now counts for an estimated 15% of all orders and grows at 8% per year, special pricing agreements have grown significantly as price...Continue reading

7 key elements of successful trade negotiations

The Deal EconomyNovember 27, 2018

The phrase win-win is probably over-used, but I am going to use it anyway to describe the situation where both parties come out of a negotiation feeling like they have won. Let’s be honest. If you think you won and the other party (your supplier or your customer) feels they lost, then it’s not really a good situation. Price is important, but (particularly in industries like building materials distributors and grocery retailers where margins are tight) time to market, supply chain reliability, in...Continue reading

From counting to measuring and managing vendor funds

The Deal EconomyNovember 20, 2018

Vendor monies that support reseller sales are big business. US-based research conducted in October 2018 estimates that, at top performance levels, distributors, dealers, and retailers use $600+ Billion (USD) in vendor funds. Projections from the EU find that approximately €500 Billion (EU) in vendor funds are similarly spent. These funds are found as four primary types including: SPAs — Special Pricing Agreements used by sales to compete with a competitor’s special pricing to a customer MDF --...Continue reading

Managing SPAs, ship & debit, claimbacks, MDFs and more

The Deal EconomyNovember 7, 2018

Rebates, SPAs, claim-backs, contract support are all very similar and at the same time quite different to each other. In essence they are all terms for the money that wholesalers claim from suppliers and manufacturers for selling their products. Some of the key differences lie in how the agreements are formed, whether goods are actually ever handled by the wholesaler, and how the claims are made. Collectively, they are sometimes referred to as “vendor monies”. It is estimated that, annually, the...Continue reading

Buyers’ guide to rebate program management systems

The Deal EconomyOctober 29, 2018

Whilst many core business systems have some functionality to help monitor trading agreements that involve vendor rebates, most have neither the flexibility nor the extensive range of functionality that is needed to support the increasingly complex world of rebate management. For many, that lack of functionality has resulted in missed rebates and poor accrual accounting. But worse than that, if your business systems don’t support rebate management fully, then the whole purpose behind creating dea...Continue reading

Best practice for systematising rebate & special pricing agreements

The Deal EconomyOctober 22, 2018

In this blog, we are going to focus on the system requirements for configuring, storing, monitoring, reviewing and operating rebate deals or special pricing agreements. For the sake of efficiency and audit tracking, and to avoid unnecessary disputes, all elements of pricing agreements should be stored in one place. A cloud based solution is ideal for multi-centred operations. Accessible for all The software should provide a central repository that (with appropriate security settings) is accessi...Continue reading

Why wholesalers should invest in a rebate management system

The Deal EconomyOctober 17, 2018

Companies tend to look for specialist rebate management software when they reach a point where their core business systems are proven to be inadequate. This particularly affects builders' merchants, plumbing distributors, electrical distributors, HVAC distributors and others who operate in the building materials industry. These businesses usually have to deal with a large number of complex trading agreements involving rebates, special pricing agreements, retrospective discounts, over-riders and...Continue reading

Newer123456789Older