Are rebates a good exchange for offering high volume?

Answered by Suzanne Morgan

One of my printers has offered my company a rebate if we commit to giving them a large volume of our work. We like this printer and consider them a partner, so we are open to setting up some type of long-term deal with them. What do you think of rebates as an incentive for us?

I'm all for setting up partnerships and long-term agreements with proven print suppliers. I'm not, however, in favor of rebates. With rebate agreements, you don't get a financial benefit from the agreement until the contract term is at or near completion (It is usually set up for a one-year term.). You should only sign a contract in which you see the benefits of the agreement, including a price discount - if that is what you are negotiating -- throughout the contract term.
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