close
Share with your friends

Practical challenges associated with rebates

Practical challenges associated with rebates

Thought Leadership

1000

Related content

Practical challenges associated with rebates

Rebates (also known as volume discounts/bonus discounts) are financial incentives or advantages given by a manufacturer/supplier, in order to motivate the customers or the group of individuals to purchase in bulk. The supplier rewards those buying in bulk by providing a reduced price for each good or group of goods. Volume discounts allow businesses to purchase additional inventory at reduced cost and allow suppliers, to reduce inventories by selling more units to bulk buyers who are incentivized by the lower price.

The volume discounts can take on a variety of arrangements with the most common being retrospective in nature and are often tiered – that is, a specific discount is applied to X number of units within that tier. The discount increases as for tiers that include larger and larger numbers of units. Upon determining the discount amount, additional volume is supplied to the buyer of the same value of discount offered.

 

Read more

© 2021  KPMG in Tanzania, a registered partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal

Stay up to date with what matters to you

Gain access to personalized content based on your interests by signing up today

Sign up today