Samsung gets rebates ready

Samsung plans to introduce a beefed up Middle East channel rebate and incentive programme during the first quarter of 2005.

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By  Stuart Wilson Published  November 30, 2004

Samsung plans to introduce a beefed up Middle East channel rebate and incentive programme during the first quarter of 2005. The vendor is currently investing in back-end systems and an administrative structure that will allow it to offer structured programmes to regional partners. “While needs-based approaches to rebates and incentives can fulfill specific requirements, a more structured and long-term approach will aim at not only improving channel health but also enhance loyalty to the brand,” explains K.S. Vasudevan, senior manager digital IT division at Samsung Gulf Electronics. Samsung plans to introduce an internet-based system that will reduce the administrative burden for resellers during the claims process. While Samsung’s programme will include a back-end rebate component, the vendor is keen for resellers not to discount in anticipation of the subsequent kickback. “Rebates and similar schemes should be a bonus,” continues Vasudevan. “It is important not to take away the thrill of making front-end margins from resellers.”

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