You will see co-op programs in the Co-op Connect Platform that have (Dist.) in the name of the program. What does that mean? It means that as a Media Publisher or Agency you have plenty of customers that purchase their products to sell from a Distributor (that is usually local to their area), versus buying direct from the manufacturer. Why would they do that? Let’s look at reasons why, and there are certainly more than what is listed below!
- If you are an HVAC Retailer/Installer, you may want to take a drive to a local distributor to look at a new unit/machine that is being introduced and see how it works and if it differs from the current units you install. This is much easier than ordering one from the manufacturer, receiving the unit, and then determining it is not one you wish to install.
- If you want a variety of products from different manufacturers it is a normal procedure to purchase from a distributor. In this case, we will look at Tire Centers versus HVAC dealers. Let’s look at a Discount Tire Center – they sell just about every brand of tire made, and why? First, people are still brand loyal and if they have had wonderful “luck” with Michelin Tires then they want to stick with that brand. Or, if their brand-new car came with Yokohama Tires and it’s time for new tires they will want to stick with the brand that they know gives their car a smooth ride. If a Tire Center ONLY sold Bridgestone or ONLY sold BFGoodrich it would be smarter to go directly to the manufacturer for the volume needed but that normally is not the case. There are specific verticals that lend themselves to carrying a wide variety of brands. We mentioned two of them here – Tires and HVAC. Other types of items that can be purchased through a distributor are Lawn Mowers, Snow Throwers, Roofing and Siding Products, Windows & Doors, Beauty Supplies and Equipment and BBQ’s – just to name several more.
So, can your customer still obtain co-op funds when purchasing from a distributor, and how?
What happens is the distributor is ordering “tons” of brand-name products, and they are selling to “many” installers/retailers/dealers (aka your customers), and the distributor is receiving co-op funds from the manufacturer for their large purchases. These distributors are then passing that co-op money down to their customers (installers, etc.). The distributor often uses the same guidelines that the manufacturer created so that all advertising of a specific brand/item has the same look/feel. Instead of submitting the final ad and copy of the invoice to the manufacturer to obtain reimbursement for your customer, it should be submitted to the distributor that they purchased all their various brands from, since the distributor will provide the reimbursement.
Below are just a few of the Distributor programs in the Co-op Connect Platform:
Brand – Products/Services – High-Level Guidelines
Reeb an SBP Brand (Dist.) – Exterior Doors, Commercial Doors
The accrual fund earned is ½% of the prior year’s purchases. Reimbursement is 50% for both traditional and digital media.
KPM Exceptional LLC (Dist. Plan) – Sno-Way and other Outdoor Power Equipment
The Accrual fund earned is at the rate of $150 for each Snowplow Package purchased and $100 for each Salt Spreader purchased. Reimbursement is 50% for both traditional and digital media.
PACE, Inc. (Sno-Way Dist.) – Snow Throwers and/or Mowers
PACE also has other co-op programs for other brands such as Ferris, SnowEx and Wright. For Sno-Way you earn 1% of prior year purchases as your accrual fund. The program runs from May through April of each year, so accrual funds are earned from May through April of prior year. Reimbursement is 50% for both traditional and digital media (however digital media must be done by preferred vendor to be eligible).
Paragon Distributing Company (Dist. Plan) Big Green Egg Grills This distributor covers the Southeastern area of the U.S. Dealers earn 1.5% of their monthly purchases as their accrual fund. Reimbursement is 50% for both traditional and digital media.
To find out how to subscribe to the Co-op Connect Platform or for more information about our Co-op Concierge Services, call us at 877-990-2667 or email [email protected].
Comments are closed for this post.