Gross margin says 24%. The supplier rebate is worth another three points nobody prices with.

Retrospective supplier rebates settle months after the pricing decisions they should have informed, and usually land in a part of the accounts no one managing margin ever reads.

By Steve 5 min read
Abstract bridge artwork for Gross margin says 24%. The supplier rebate is worth another three points nobody prices with.

In merchanting, distribution, motor trade, food service, IT reselling and much of construction supply, a meaningful share of the year’s profit never appears on a purchase invoice. It arrives later, as a retrospective rebate: a growth bonus, a volume tier, a category support payment, a settlement discount. The buying director negotiates it in January. Finance accrues it monthly. It settles in March. Meanwhile, in June, someone quotes a job off the cost showing in the system: which is the invoice cost, because that is the only cost the system knows.…

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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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