1. Rebate Management Add-on from JKT
1.1. Features
Rebate Management Solution by JKT Consulting gives the cement companies to automate their scheme management. Rebate Management solution will give flexibility to create the schemes, execute the schemes and to settle the discount. This discount is based on the customer's sales volume over a predefined time period, Rebates will be settled by the customer service personnel by the creation of credit notes which will be posted against the accruals previously collected
Rebate Management Solution will help eliminating unnecessary costs, improving processes, insuring compliance, minimizing risks, and enhancing overall company performance.
1.2. Rebate Schemes
Some of the basic Rebate
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Comparison Scheme In this scheme, current Sales data will be compared with the Previous Sales data and discount will be given on the basis of growth percentage
ORC Scheme In this scheme, discount will be given to the chief stockiest on the basis of Sales made by the sub stockiest, as per the rebate Slab.
Tour Scheme In this scheme, the customer will be eligible for Tour based on the sales volume.
Token Scheme In this scheme the customer will be given different tokens pack wise at the time of sale and the same will later be redeemed by the customer as per the Token value
City wise Quantity Discount This will be a monthly discount based in the sales according to the cities in the southern parts of India.
1.2.1. Park and Post
The solution offers users the flexibility of calculating the discounts and incentives and parking it in interim stages before finally approving it for posting to the customer accounts for payouts or settlements. The feature allows for review of the calculated items which can then be parked in interim accounts or posted to customer accounts for final processing and
... at 4% net to reflect its lower retail price. This will provide commissions equal to AirCap.
Heller, L. (2001). Discount Contribution Keeps Expansion on Target. DSN Retailing Today. V 40 i23, p. 20.
Promotion: Promotional budget will be around 20-32% of the budget, changes will be according to product life cycle and trade off statistics. Allowances will be mostly steady around 15% with a maximum increase up to 20% when products reach maturity or sales start to decline. Promotional allocation could change among those channels that don’t show growth regardless sales force support investments.
Second, Best buy would renovate its exist stores in different branch based on the more catalogue of customer who living in(Best Buy, 2015). Therefor, some stores is especially designed for a group of customer like A, some became Customer B stores, C stores. For instance, a delicates service stores with exclusive salesman for IT geek like Customer A. If Customer B, a soccer fans buys a headphone, he or she only want to ease his or her demand to listen music instead of the brand. However, Best Buy not only focus on current profit, but also focus on customer group interaction- to analysis customer purchase behavior (Best Buy, 2015). Accordingly, Best Buy would effectively estimate the next purchase and product combination from customer based on this method. For example, normally, a customer will purchase DVD after she or he buys a DVD player but Best buy’s customer profitability analysis indicated that this kinds of customer also buys music accessories in second day after she or he buy DVD. Thus Best Buy would be able to send more relevant e-mail and special combination offer specific customer after customer purchaser behavior
The issue is whether the exception for volume purchasing to the rule of universal pricing for wholesale transactions under Robinson Patman Act is Constitutional. A functional discount occurs where a buyer is permitted to purchase a product at a lower price per unit than another buyer. The legality of the practice, however, is less than clear, since functional discounts often present both buyers and sellers with many legal 'problems under the Robinson-Patman Act.
Current trade deal promotions are destroying our margins, retailers take advantage of these promotions because is profitable for them. For example, every year during the 6 week “back to school season”, if we launch a trade promotion for two weeks, retailers will buy inventory that covers all 6 weeks of the seasons, and they will extend the discounts to the client to increase their volume but eroding our brand equity, they will get a 5% increase in their margin and we’ll get a 15% reduction (Exhibit A, trade promotion). In a “best case” scenario, the retailer and the client are benefitted, but more often than not, only they retailer gets the benefit as they don’t pass the savings to the consumer.
The sales director proposed that if the firm were to reduce the price of Item 345 to FF15.00/m, they would be able to increase sales to 175,000 units (or 25% of industry volume). But if they were to keep the price at the current value of FF20.00/m, they would be able to sell not less than 75,000 units (or 11% of industry volume).
The receivables turnover is based on the assumption that all sales are credit sales. The values of receivables turnover for 2004 and 2005 are 10.21 times and 8.83 times, respectively. This means that IQ’s efficiency is considerably declining in terms of cash collection. The decrease in receivables turnover is explained by the higher increase in average net receivables (71%) than the increase in net credit sales (25%).
below, if firm X decides to lower its price from B to D, sales should
In order to fulfill customer needs, companies offer a lot of shopping ways to customers like bonus point programs and membership programs. Customers can obtain the redemption products and enjoy discounts when purchasing by joining these programs, which can lead to save more.
Participative pricing mechanisms, depending on its innovativeness, can be an advantageous promotion tool to catch potential customers? attention. Moreover, it gives seller a unique data regarding consumers? willingness to pay for a specific product or a service (Kim, Natter & Spann, 2009; Spann, Skiera & Schaefers, 2004). These data can be used as a forecast when predicting future sales of a product or a service (Kim, Natter & Spann, 2009).
Sales promotions will be controled by measuring the number of product samples distributed and by computing online sales of 75 or above.
Sales promotion is usually a short-term sales incentive that works effectively, but is subject to price sensitivity. They usually offer free delivery and transportation of products if they are ordered in a certain amount.
Sales promotions offer customers an incentive to buy an item. Sale promotions are promotions such as coupons, percent off, rewards and rebates. Sales promotions can be an important part of building brand equity. Sales promotions can increase sales and attract new customers.