Building Long-Term Loyalty and Growth: Scandinavian Home Products' Shifts to Rebates

Industry Type

Household appliances

Business Type

Distributor

The Company

Founded in 1993, Scandinavian Home Products is a wholesale distributor specializing in sewing machines and equipment, exclusively serving a network of dealers without engaging in direct sales. Operating across four countries, the company offers a consistent product range to all its dealers. The Enable implementation project is led by CEO, Jon M. Soløy and CFO, Øivind Uscinski.

Discount Incentive Program  

Prior to implementing rebates, Scandinavian Home Products employed a tiered discount system with bronze, silver, gold and platinum 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.”

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 was a pivotal moment for Scandinavian Home Products. CEO, Soløy reflects, "When I started the company, rebates were a natural tool for me. However, as we grew and relied on Excel for managing these programs, errors and inefficiencies became significant challenges. We eventually moved to discounts, which seemed simpler but eroded our profitability."

Soløy continues, "By 2019, our discounting practices were unsustainable, impacting our bottom line. When the pandemic hit and demand surged, we realized we needed a new approach. Meeting Enable at a NetSuite convention provided the solution we needed to restructure our relationships with customers and shift back to a rebate model."

Uscinski elaborates on the rebate strategy: "Our goal was to foster long-term loyalty by moving away from the perpetual discount hunting that dominated markets like Finland and Denmark. With rebates, we can motivate our dealers to pursue specific sales goals while building trust and collaboration."

The Platform

NetSuite and Enable Integration

Scandinavian Home Products successfully integrated Enable with their existing NetSuite platform. Soløy explains, "NetSuite is well-suited for handling discounts and promotional campaigns. However, rebates required a more robust platform to manage their complexity. Enable was the ideal choice for this."

Uscinski adds, "With Enable, we can trust the accuracy of our figures and automate processes like issuing credit notes through NetSuite. The tool has not only streamlined operations but also motivated both our dealers and sales team to embrace this new strategy."  

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.”

Increasing Dealer Sales By 200%

Soløy emphasizes the transformative role of Enable in driving sales: "We have shifted our dealers' behaviours significantly, moving from a 20% success rate with online orders to 85% since introducing Enable. Some dealers have even increased their sales by more than 200% which is fantastic to see.”

Partner Dashboard

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

For Scandinavian Home Products, cultivating loyalty goes beyond transactional benefits. Soløy explains, "Our rebate programs are designed to motivate dealers to achieve more rebates while boosting sales. This approach has helped us gain a competitive edge, as dealers now prefer our products due to the value they derive from our rebates."

Uscinski adds, “When dealers actively track their progress, it serves as a strong motivator. Providing clear and accessible insights into the program has been critical to driving adoption and enthusiasm among our partners.”  

A Partnership Built on Trust

Both Soløy and Uscinski commend Enable for their professionalism and support. Soløy remarks, "Enable's team is the most professional I’ve ever worked with. From the sales process to ongoing support, they’ve exceeded our expectations. Their expertise has been instrumental in helping us design effective programs and reshape our business relationships."  

Uscinski adds, “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.”

Jon M. Soløy
CEO

Takeaways

  • Scandinavian Home Products shifted from a discount-based system to a rebate model to address inefficiencies and improve profitability. This change fostered long-term loyalty by encouraging dealers to meet specific sales goals and aligning incentives for growth.

  • The integration of Enable with the NetSuite platform enabled Scandinavian Home Products to streamline their operations, automate rebate processes, and improve accuracy. This technology transformation enhanced collaboration and transparency with dealers, providing real-time insights and boosting sales by as much as 200%.

  • The Partner Dashboard and Enable's collaborative platform played a critical role in increasing dealer participation and engagement. Dealers gained constant access to their rebate levels, fostering two-way communication, transparency, and trust. This approach not only motivated dealers but also solidified their preference for Scandinavian Home Products’ offerings, ensuring long-term partnerships and mutual growth.

Key Metrics:

30
Years In Business
200%
Increase in Dealer Sales
85%
Increase in Online Orders
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Building Long-Term Loyalty and Growth: Scandinavian Home Products' Shifts to Rebates

Industry Type

Household appliances

Business Type

Distributor

The Company

Founded in 1993, Scandinavian Home Products is a wholesale distributor specializing in sewing machines and equipment, exclusively serving a network of dealers without engaging in direct sales. Operating across four countries, the company offers a consistent product range to all its dealers. The Enable implementation project is led by CEO, Jon M. Soløy and CFO, Øivind Uscinski.

Discount Incentive Program  

Prior to implementing rebates, Scandinavian Home Products employed a tiered discount system with bronze, silver, gold and platinum 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.”

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 was a pivotal moment for Scandinavian Home Products. CEO, Soløy reflects, "When I started the company, rebates were a natural tool for me. However, as we grew and relied on Excel for managing these programs, errors and inefficiencies became significant challenges. We eventually moved to discounts, which seemed simpler but eroded our profitability."

Soløy continues, "By 2019, our discounting practices were unsustainable, impacting our bottom line. When the pandemic hit and demand surged, we realized we needed a new approach. Meeting Enable at a NetSuite convention provided the solution we needed to restructure our relationships with customers and shift back to a rebate model."

Uscinski elaborates on the rebate strategy: "Our goal was to foster long-term loyalty by moving away from the perpetual discount hunting that dominated markets like Finland and Denmark. With rebates, we can motivate our dealers to pursue specific sales goals while building trust and collaboration."

The Platform

NetSuite and Enable Integration

Scandinavian Home Products successfully integrated Enable with their existing NetSuite platform. Soløy explains, "NetSuite is well-suited for handling discounts and promotional campaigns. However, rebates required a more robust platform to manage their complexity. Enable was the ideal choice for this."

Uscinski adds, "With Enable, we can trust the accuracy of our figures and automate processes like issuing credit notes through NetSuite. The tool has not only streamlined operations but also motivated both our dealers and sales team to embrace this new strategy."  

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.”

Increasing Dealer Sales By 200%

Soløy emphasizes the transformative role of Enable in driving sales: "We have shifted our dealers' behaviours significantly, moving from a 20% success rate with online orders to 85% since introducing Enable. Some dealers have even increased their sales by more than 200% which is fantastic to see.”

Partner Dashboard

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

For Scandinavian Home Products, cultivating loyalty goes beyond transactional benefits. Soløy explains, "Our rebate programs are designed to motivate dealers to achieve more rebates while boosting sales. This approach has helped us gain a competitive edge, as dealers now prefer our products due to the value they derive from our rebates."

Uscinski adds, “When dealers actively track their progress, it serves as a strong motivator. Providing clear and accessible insights into the program has been critical to driving adoption and enthusiasm among our partners.”  

A Partnership Built on Trust

Both Soløy and Uscinski commend Enable for their professionalism and support. Soløy remarks, "Enable's team is the most professional I’ve ever worked with. From the sales process to ongoing support, they’ve exceeded our expectations. Their expertise has been instrumental in helping us design effective programs and reshape our business relationships."  

Uscinski adds, “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.”

Key Results:

30
Years In Business
200%
Increase in Dealer Sales
85%
Increase in Online Orders
See what Enable can do for you
Get a Demo