I hope that you have enjoyed the article "Negotiating Rebates: Best Practices."
Though not getting the mail-in rebate you earned for buying a computer, a piece of software, an appliance or whatever is a common consumer purchasing headache, it is not without its parallel in corporate procurement. Just like consumer rebate arrangements, when you have a corporate contract that involves rebates, you have to know what you have to do to earn the rebate, when you should expect it, and who to follow up with if you don't get it on-time.
And then you actually have to remember that you should get it!
That headache-inducing process and the uncertainty of recovery is why I have always preferred to negotiate rebates into the price instead. But I think the article does go into one scenario where negotiating rebates makes sense.
How about you? What is your experience with rebates in corporate procurement contracts? Can you recommend any situations where rebates are a better alternative than negotiating a lower price?
If so, please use the comments link below to share your experience!
To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
Struggling To Have A Rewarding Purchasing Career?
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2 comments:
Yes I agree with you that it is better to negotiate the rebates into the price. Also applicable is situation where suppliers offer free items for purchase, eg buy 10 boxes you get 2 boxes free. It is often better to negotiate the 20% discount into the price so that you are not bound by the buying pattern instituted by the supplier. This also allows you to record supplier's new level of buying prices for future negotiation when the contract is ready for renewal.
Thanks for sharing your thoughts, Elina. Your suggestion is excellent!
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