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The Difference Between Rebate Processes and Ship & Debit Processes

February 26th, 2020 (Updated 03/24/2021)

Garth Hoff
Principal Pricing Solution Engineer at Pricefx

The Difference Between Rebate Processes and Ship & Debit Processes    The smartest businesses practice value-based discounting. This means structuring incentives in such a way as to sculpt customer behavior towards meeting specific business goals and objectives. Different discounts are applied to different customers, channels or segments, in a highly bespoke and carefully considered way, taking into account past performance and current market conditions.  Rebates, whereby a customer is re-paid some of their spend in return for hitting certain pre-determined targets, are very effective at eliciting behavioral change. Ship & debits, whereby distributors debit suppliers for goods shipped below list prices, are special pricing agreements that...

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