We usually don't offer rebate agreements, but we do make exceptions for bulk users. Instead, we focus on providing lower item costs and ongoing savings through regular product reviews.
We rarely offer rebate agreements because we aim to provide the most competitive item prices upfront. However, there are times when we need to offer rebates to make a competitive tender proposal. In these cases, we increase item prices to allow for the rebate.
Before agreeing to a rebate, we consider several factors, such as the annual contract value and your ordering methods. We carefully evaluate these factors before committing to an agreement.
If we do agree to a rebate, we typically propose 1%-3% of the annual contract value. Here are some examples:
- For a spend of £1.6 million:
- This falls within the £1.5 million to £1.75 million bracket.
- Rebate percentage: 1.25%
- Rebate amount: £1.6 million * 1.25% = £20,000
- For a spend of £1.8 million:
- This falls within the over £1.75 million bracket.
- Rebate percentage: 1.75%
- Rebate amount: £1.8 million * 1.75% = £31,500
- For a spend of £2 million:
- This also falls within the over £1.75 million bracket.
- Rebate percentage: 1.75%
- Rebate amount: £2 million * 1.75% = £35,000
Our focus is on providing lower item costs and ongoing savings through regular product reviews. By doing this, we take a proactive partnership approach rather than relying on rebate agreements.