How to Detect Under the Table Rebates

In a bid to get customers not only through the doors, but opening their wallets, sellers often employ discounts, rebates, and similar price-cutting tactics. In complex business to business transactions, one supplier may be receiving rebates or kickbacks. How can you tell if a business is receiving a rebate kick-back from the supplier but has decided not to pass the savings on to you?

Saving Green Across the Board

Let’s start with a few different kinds of money-off deals. Keep in mind that these exist in a number of different industries including automotive, pharmaceutical, construction, food, and media to name a few.

• Rebate: depending on the industry, rebates are sometimes called Incentives or Trade Assistance (especially in the automotive industry). A rebate originates from the manufacturer and is a specific amount of money that’s taken off the price of the product at the start, as long as certain terms and conditions are first met by the consumer. The seller receives a reimbursement from the manufacturer for the rebate amount, so they are not out any money from their bottom line.
• Discount: this is a reduction in the price offered by the seller. The supplier might not be involved and therefore, does not reimburse the seller; the discount is a loss for the seller’s pocket.

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