Scandinavian Home Products, established in 1993, is a wholesale distributor specializing in sewing machines and sewing equipment. They exclusively operate through a network of dealers and do not engage in direct sales. The company maintains dealers in four countries, each offering the same range of products. Øivind Uscinski serves as the Software Asset Manager responsible for overseeing the Enable implementation project.
Discount Incentive Program
Prior to implementing rebates, Scandinavian Home Products employed a tiered discount system with bronze, silver and gold categories for their dealers.
Uscinski explains the program, stating, "As a new customer, you start at the gold level. In your first year, if you maintain exclusivity with us, we engage in a discussion to estimate your anticipated purchase volume, and you are assigned a specific threshold. For instance, if your estimated purchases fall below 300,000, you belong to the bronze category. If they range from 300,000 to 800,000, you attain silver status, and for purchases exceeding 800,000, you ascend to the gold tier. If your purchases surpass 1.6 million, you are designated as platinum."
He continues, “We perform manual assessments to monitor partner progress, and if their purchases exceed the threshold for the current level, they are automatically upgraded to the next tier. This system simplifies the process of setting and adjusting pricing schedules. Once assigned a new tier, they remain at that level for the subsequent year.”
Transition From Using Discounts to Rebates
Transitioning from a discount-based approach to rebates, Uscinski elaborates, "Our goal was to shift away from the constant pursuit of discounts, particularly in markets like Finland and Denmark, where customers are highly focused on securing discounts. I advised them to employ a different strategy by incrementally adjusting prices upward and offering more substantial rebates. This shift aimed to foster long-term loyalty, steering us away from the perpetual discount hunting associated with every order. It also required a shift in the mindset of our dealers, encouraging them to refrain from immediate discounts and, instead, incentivizing them to drive specific sales goals."
He continues, "Our objective is to shift our dealers' mindsets from focusing solely on hunting for discounts towards embracing more sustainable, long-term rebate programs and benefits. Enable stands as the essential rebate management tool to facilitate this transformation. "
NetSuite and Enable Integration
Scandinavian Home Products successfully integrated with Enable, as it is a NetSuite partner. Uscinski explains, "NetSuite is well-suited for handling discounts and various promotional campaigns, adapting to the specific nature of each campaign or sale type. Given our diverse pricing tiers, managing these aspects posed no significant challenges. However, when it came to rebates, we required a more robust and comprehensive platform to effectively handle the various rebate types we intended to utilize."
Improving Collaboration and Visibility with Dealers
Previously, Scandinavian Home Products relied on their own portal for dealers to place orders for products while also providing access to their invoices. However, this system had its share of shortcomings and was not functioning optimally. Recognizing the need for a collaborative platform, the company sought to improve communication and transparency for their dealers with the help of Enable.
Uscinski says, “Enable was essential to ensure active participation from our dealers. Without this platform, the effectiveness of the programs was compromised, as our dealers needed real-time insights into the status of their orders and loyalty programs. Visibility and the ability to comprehend the benefits derived from these programs were crucial for the successful operation of their business.”
Uscinski explains, "Partner Dashboard is central to our operations; it serves as the linchpin for achieving our objectives. It empowers our dealers with constant access to their rebate levels, fostering essential two-way communication between them and us. Our overarching objective is to collaborate with them in real-time in order to drive growth, as we aspire to elevate our performance and ensure profitability year after year. Transparency and the ability to effectively engage with our dealers is fundamental, ensuring accessibility and visibility in our collaborative efforts."
Building Long-term Loyalty
Uscinski comments, “Our aim is to cultivate a strong sense of long-term loyalty among our dealers. Over the course of the next year, we anticipate the transformation taking place as our dealers enthusiastically adopt this loyalty-centric approach. We firmly believe that when they can actively track their progress, it serves as a motivating factor for them. Hence, it is of paramount importance that they possess a clear and comprehensive understanding of the information they are presented with. Lacking this clarity, it becomes difficult for them to fully appreciate the loyalty program for what it truly represents – a pathway to attain valuable rebates as a reward for their steadfast loyalty."
Helpful and Friendly Team
“Enable has consistently proven themselves to be not only highly proficient in their field but also exceptionally helpful, friendly, and approachable. Their expertise and deep understanding of our specific needs have been evident in their ongoing support and dedication to going the extra mile to provide invaluable assistance. Their collaborative approach has made working together a truly pleasurable experience, and we eagerly anticipate our continued partnership, knowing that we are in capable and supportive hands.”
Øivind Uscinski | Software Asset Manager