What Vistex is?
Vistex is an SAP Solution Extension Partner with a longstanding and unique strategic development relationship with SAP. Not only are our products tested, validated, licensed and supported by SAP, Vistex Solutions for SAP also leverage the core SAP environment to maximize our customers’ ERP investment. The Vistex team brings an unparalleled depth of expertise and best practice experience into every business process deployed, in every industry served. Find out how Vistex can enable your business to manage your Go-to-Market solutions more efficiently, while driving revenue and controlling costs.
Rebates
We will effectively manage your rebates plans
What is a rebate?
Rebates are a retrospective payment which ultimately reduces the overall cost of a product/service at a later date. This makes rebates different to discounts, as you pay the bill for the full amount then, at some point later in time, part of the amount may get returned to you. Often certain conditions may have to be met in order to get rebates such as volume-based, special pricing agreements (SPAs) or claim-backs.
Earnings or payments from rebate deals can form a very significant proportion of a company’s profit margin. Rebates are commonly used as an incentive, to build loyalty and improve sales and market share.
A wide range of industries including building supplies, electronics, retail and wholesale distribution regularly offer rebates based on certain locations, products or product groups and on certain types of transaction. This means that the rebates can get rather complex.
What Vistex does for your cmpany?
Build your own layouts
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Vistex reduced month-end processing by 70% within the first quarter of implementation for a leading global interactive entertainment software company
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A large soft drink company reduced end-to-end contract processing time by 80%
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Over 9,000 vendor contracts managed through Vistex with over $2.6M in chargebacks processed/month
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Vistex software solutions are translated into 8 languages
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The world’s largest pharmaceutical distributor processes 1.8M sales order lines daily, most of which are used in chargeback claims and rebates processes by Vistex
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A leading world food company pays over 7,000 reps through a variety of commission plans
How Rebate works
An example of rebates
To use just one rebate example, we’ll turn volume-based discounts into one of the world’s most-consumed beverage: coffee. When I go to a coffee shop and get one free every time I fill up my coffee card it’s kind of similar. I won’t receive the free coffee unless I hit that magic target. If I fall short I get nothing. Customer rebates are similar in the sense that they aren’t guaranteed – or are only guaranteed if you’re super-confident that you’re going to hit that target.
Just like when buying coffee, money flows in one direction initially. Then, at a later date, the money flows back (you get a free cup of coffee). When it comes to customer rebates, timing varies on this, but in the B2B world, rebates are often calculated annually.
Business case for a Complex Rebate
One click setups made easy
Rebate agreements can take many complex forms, as they are often designed to cater to the specific sales strategies of the individual trading partners involved.
A simple example of a rebate is a volume incentive, where a customer could receive a rebate for buying a certain volume of a certain product over the life of the deal. For example, an annual rebate agreement might state a 5% rebate, conditional on purchasing over 1,000 units of a product costing $100. This would trigger a rebate payment of $5 per unit to the customer, as long as they purchased over 1,000 units throughout the year, effectively reducing the price paid for the product to $95 retrospectively.
These kinds of rebates are often tiered. For example, if you purchase 1,000 units, you may earn a 5% rebate, but if you purchase 2,000 units you could earn a 10% rebate and so on.