On today’s Adage there was a story about how rebates in the US are becoming more commonplace. Shock Horror!
This practice is widespread in Europe and in particular in the UK, but i’m not sure this practice is that much of a concern if your procurement team has done it’s job properly.
Having an experienced hand with you in the negotiations, and as part of the selection team, will ensure that the contract you get covers you off with regards to rebates and incentives. Agencies today do understand the role of the procurement department and when challenged (in the right way) are more than happy concede the point around rebates.
Where there is a problem, and this is something that we see increasingly, is where the client is mid sized and doesn’t have the procurement support – or where they do it’s not sufficiently experienced enough in marketing procurement to spot or understand the pitfalls.
Calling in a specialist doesn’t need to costs the earth and if you can only afford it on a tactical basis it will still deliver significant dividends when you sign that all important contract.
the original article can be found here.