The rebate arrives in January. It is most of the year’s profit.

Retrospective supplier rebates rarely show up where the decisions are made, and by the time they land the pricing that earned them is already a year old.

By Steve 5 min read
Abstract bridge artwork for The rebate arrives in January. It is most of the year’s profit.

A distributor, a merchant, a workshop, an agency buying media: in a lot of businesses there is a payment that arrives once or twice a year from a supplier, calculated on volume purchased, and it is worth more than the operating profit the business reports. Everyone knows it is coming. Nobody prices with it. And when it lands it is treated as good news rather than as what it actually is: the return on a year of purchasing decisions that were mostly made without reference to it. That gap between…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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