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ARTICLE · 07 FEBRUARY 2008

Are You Leaving Money On The Table?

The compensation you provide to your channel partners is one of your company’s largest costs.

United StatesStrategy

How Much Are You Spending On Your Channel Pricing System?

Volume Discounts...Functional Discounts...Growth Incentives...Rebates...Spiffs...Commissions...Trade Funds...Co-op Funds...Special Deals...Promotional Allowances...Markdowns...Loyalty Plans...

The compensation you provide to your channel partners is one of your company's largest costs. As such, it requires rigorous, critical and frequent review.

Channel pricing represents the entire array of prices, discounts, incentives and other benefits that sellers provide to motivate and compensate channel partners. When considered in total, these programs often exceed a seller's total net revenue. Suppliers can materially affect their financial performance by optimizing the deployment of these programs and funds.

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