Rebate make good use of the double-edged sword.doc

 PAGE \* MERGEFORMAT 13 Rebate make good use of the double-edged sword To motivate distributors, many companies will develop rebate incentives, the intention is to mobilize their enthusiasm rebate. Manufacturer rebate is judged according to certain standards to the form of cash or in kind lag dealer incentives, it has lagged realized character. Most businesses have adopted the approach is linked with the sales. However, the rebate is a double-edged sword, used properly can play the role of dealer incentives can be when used properly, will play a diametrically opposite effect, become a distributor of inducing adverse short-term agents. Manufacturers generally based on sales to give rebates to the distributors, sales greater the higher the rebate. This is to mobilize the enthusiasm of dealers, encouraging distributors to market and sell their products. To a certain extent, this approach can indeed play a role in dealer incentives. After all, is very important for the manufacturers to improve sales, especially in the early products to enter the market, dealers are also their ability to market, manufacturers can occupy an important criterion. When the products to capture the market, manufacturers shift the focus of sales efforts to stabilize the market. At this time, simply based on the drawbacks of sales rebates will be increasingly evident. To fight for the interests, dealers will want to increase sales, but in a certain time can not be completed within a limited area sales targets, they inevitably think of FALSIFYING, for example, at a low price of products sold, or Ping Jin-ping out of even low - in the wholesale purchase price. The results, leading to chaos and even collapse of the price system. Case: rebate, is not easy to say love you Side is always the marketing boss of a cosmetics manufacturer, the sales performance of last year, well, this year, ready to make a big fight. In order to achieve this goal, the party general introduction of the new reward