You will see co-op programs in the Co-op Connect Platform that have (Dist.) in the program’s name. 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 directly from the manufacturer. Why would they do that? Let’s look at a couple of reasons; there are certainly more!
- If you are an HVAC Retailer/Installer, you may want to drive to a local distributor to look at a new unit/machine 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 units from different manufacturers, it is also smart to purchase from a distributor. 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, 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 items that can be purchased through a distributor are Lawn Mowers, Snow Throwers, Roofing and Siding Products, Beauty Supplies and Equipment, and BBQs – 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 their products as they are selling to “many” installers/retailers/dealers (aka your customers). They are receiving co-op funds from the manufacturer for their large purchases. These distributors then pass that co-op money to their customers (installers, etc.). The distributor often uses the same guidelines 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 purchased all their various brands, as they are the ones that 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
Century A/C Supply (Dist. Plan) – Ruud A/C Equipment
This distributor is providing co-op funding based on purchases of Ruud units. Contact the distributor (Century) to find out your accrual balance. Reimbursement is 50% for both traditional and digital media.
KPM Exceptional LLC (Dist Plan) – Sno-Way and other Outdoor Power Equipment
Accrual fund earned is $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. Reimbursement is 50% for traditional and digital media (however, digital media must be done by the preferred vendor to be eligible).
Paragon Distributing Company (Dist. Plan) – Big Green Egg Grills
Depending on your dealer level with this Distributor, you earn anywhere from 2 – 4% as your accrual fund, and the money is earned monthly. Reimbursement is 50% for both traditional and digital media.
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