Manufacturers to Roll Out More Rebates

As the economy recovers from the Great Recession, manufacturers are gearing up to sell more products. buildingsupplySome are finding that the three-​tier marketplace they’ve positioned themselves in has changed. To improve their competitive angle and connect directly with consumers, more of these enterprises plan to use rebates in the coming year.

While manufacturers are looking forward to a better year in 2013, they have concerns such as finding new customers (38%), generating leads (29%) and building brand awareness (20%).  To grow sales, manufacturers, are often dependent on retailers and distributors.  Writing for Supply House Times, Tony Maull points to a recent Aberdeen Group study which highlights that 48% of manufacturers are using rebates to build up revenue. But this method presents issues because there are so many businesses involved. The outcomes of a rebate program often result in:

  • Poor promotional effectiveness (32%)
  • Poor execution which makes measurement and prediction difficult (21%)
  • Inability to use good customer data (21%)

Maull points out that manufacturers may begin to control more promotional funds with the goal of compiling a good customer database.  Manufacturers may also put together promotions that give both retailers and end customers the incentive to purchase a specific product.  Finally, manufacturers can also collect customer data directly from the rebate programs and use that information to generate more effective promotions for future sales. This strategy will require them to rely less on their retail partners or distributors.

[Source: The Rebate Debate. Supplyht​.com. 1 Nov. 2012. Web. 13 Dec. 2012] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.