The Company

A 40-year-old leading elevator company, celebrated for its unique engineering capabilities, operates globally and generates annual sales of $1.5 billion. In 2022, the company partnered with Enable to tackle their rebate management challenges. Central to this effort is the Pricing Manager, responsible for developing pricing strategies, defining quantity discounts, supporting key account negotiation strategies, and crafting strategic rebate programs.

The Power of Rebate Programs

Rebates form the cornerstone of the company's incentive strategy. They are structured either around purchase quantities or total spend values, always tied to year-over-year growth.

"As a manufacturer, rebates are an excellent low-risk tool to effectively lower prices for higher quantities. They allow us to regulate customer promises to increase purchases in exchange for lower prices,” explains the Pricing Manager.

Growth-Driven Rebate Strategies

The company focuses on crafting rebates that drive growth among its reseller customers. By finding the optimal price point for specific quantities, these programs encourage increased sales.

"We work closely with our sales managers to maintain a growth mindset," the Pricing Manager shares. "Sometimes, after a strong growth year, removing a rebate can risk losing those additional sales. In such cases, we revisit the price list or expand the rebate tiers to offer continued rewards for further growth."

Risk Mitigation Through Rebates

Rebates also play a critical role in managing pricing risks. They serve as a safeguard against sudden shifts in customer behavior, such as significantly reduced purchases due to competitive pressure.

"If a customer moves to the competition and decreases their purchases, our rebate system automatically adjusts to a higher price tied to lower quantities," the Pricing Manager notes. "This ensures that our pricing aligns with the actual volume delivered."

Through thoughtful rebate design and strategic pricing, the manufacturer continues to foster long-term growth and strengthen customer relationships.

The Challenge

Before transitioning to Enable, the manufacturer faced significant challenges in managing rebate programs. The reliance on Excel spreadsheets created inefficiencies, inaccuracies, and frustration for both the company and its customers.

Limitations of Spreadsheets

Using Excel for tracking rebates and agreements posed numerous issues:

• Complex Accruals: The manufacturer struggled to efficiently account for varying agreement types—whether quarterly, half-yearly, or annually.

• Formula Errors: Manual errors in spreadsheet formulas often led to miscalculations, compromising accuracy.

• Customer Discontent: Missed payouts due to errors or oversights resulted in frustrated customers, jeopardizing trust and relationships.

"Managing rebates in Excel was time-consuming and prone to mistakes. If there were errors, customers could miss their payouts, leading to dissatisfaction and frustration,” the Pricing Manager explains.

Efficiency and Accuracy with Enable

The adoption of Enable transformed the manufacturer’s rebate management process. It introduced automation, transparency, and scalability, addressing the limitations of Excel.

"Enable provides us with efficiency, an audit trail, and a greater level of accuracy," the Pricing Manager shares. "We can now manage complex rebate agreements without worrying about errors or missed payments."

Scaling Rebate Programs for Growth

Enable also helped the manufacturer to expand its rebate offerings in ways that Excel simply could not support. The platform facilitated the management of more extensive and varied rebate programs, allowing the manufacturer to drive growth and strengthen customer relationships.

"We could not have scaled up our rebate programs and agreements in Excel," the Pricing Manager acknowledges. "Enable gives us the tools to support growth and meet customer expectations”.

By overcoming the challenges of manual processes and embracing Enable, the manufacturer has positioned itself for sustainable growth and improved operational efficiency.

The Platform

The implementation of Enable’s rebate management platform has been a game-changer for the manufacturer. With a seamless setup process and unparalleled support, Enable has provided a robust solution to streamline rebate tracking, improve compliance, and enhance reporting capabilities.

First-Class Support and Implementation

Enable’s support team played a critical role in the successful rollout of the software.

"The support from Enable has been first class, they were with us every step of the way during implementation, making the transition smooth and efficient,” the Pricing Manager shares.

He continues, "The software is simple and straightforward to use, backed by a great implementation and support team.”

Efficiency and Robust Rebate Tracking

With Enable, the manufacturer moved from cumbersome spreadsheets to a systemized approach to rebate management. This shift saved 14 hours a month of manual effort and reduced the risk of errors.

"Enable has given us a robust way of tracking rebates, the time we’ve saved by moving away from spreadsheets is invaluable,” the Pricing Manager shares.

Centralized and Auditable Repository

"Having a single, reliable source for all rebate agreements is fantastic," the Pricing Manager explains. "It provides exactly what we need to support audits with clear evidence or quickly reference the latest agreements when needed."

He continues, "Enable is instrumental in helping us maintain compliance and accuracy while supporting our growth ambitions.”

Resolving Disputes with Confidence

In the rare cases where customers dispute rebate payouts, Enable’s transparency and traceability have been instrumental for them.

"If there’s ever a dispute, we can easily pull out the backup transactions from within Enable," says the Pricing Manager. "It’s a critical feature for maintaining trust with our customers."  

Advanced Reporting for Better Insights

The company is excited to leverage Enable’s Advanced Reporting features, which will provide detailed insights into rebate profitability and performance.

"With Advanced Reporting, we’ll have the tools to track how rebates impact profitability and identify areas for improvement," the Pricing Manager says.

Future Expansion with Vendors

The company plans to extend its use of Enable to manage vendor rebate agreements in the future.

"Once we establish our first vendor rebate agreement, we’d like to use Enable with them as well," the Pricing Manager shares. "The system’s flexibility and scalability make it ideal for both customer and vendor agreements."