If you’ve ever been confused about terminology relating to rebate management, you’re not alone! The world of rebates is a complicated place at the best of times, especially when there can be multiple different names for the same thing.
DealTrack Blog — Special Price Agreements SPAs
Ah yes, rebate claims. An evil necessary in the land of SPAs (special price agreements). While they’re inherently necessary to realize intended profit on the sales transaction, they’re a pain in our side when it comes to handling the issues that plague the reconciliation process.
But the process of reconciling product rebate claims is full of information that is largely dismissed, not getting any attention to the voice that tells us the very issues we continue to tolerate rather than fix. Let’s take a look at a couple of these issues…
SPAs (Special Pricing Agreements) are a common vendor program in many industry sectors. The program gives a special product discount for verified sales to an ultra-competitive event where in-stock discounts can’t secure the order.
SPAs trace their roots back to the 1970’s but have shown significant growth in the past decade. As B2B e-commerce now counts for an estimated 15% of all orders and grows at 8% per year, SPAs have grown significantly as price and availability are easily and quickly researched.
SPAs are now used by 77% of all distribution firms in North America; second only to volume rebates which are used by 90% of distributors.
Topics: Rebate Management, Rebate Accounting, Industry Sector: Building Materials, Industry Sector: Wholesale Distribution, Industry Sector: Retail, Industry Sector: Buying Groups, Rebate Management System, Special Price Agreements SPAs