Rebate and volume bonus
Quick answer
A discount is a price reduction given on the invoice; a volume bonus is a reduction granted after the customer's cumulative purchases reach a threshold.
Key takeaways
- Invoice discount: simple, but lowers margin from the first order
- Threshold bonus: encourages volume, paid only if the target is met
- Category bonus: steers buying towards desired products
- Retroactive or from the threshold up: changes cost sharply at the threshold
Discount and bonus: what is the difference
A discount reduces the price directly on the invoice, at the time of sale. A volume bonus (rebate) is calculated over a period, usually quarterly or yearly, and granted after a volume or value threshold is reached, normally through a separate document. Both are set in the contract.
How it is calculated
Net price = list price × (1 − discount %). Bonus = eligible cumulative sales × bonus percentage, for the threshold reached. Example: 5% bonus for quarterly sales above 100,000 RON, 8% above 200,000 RON. Margin after bonus = (sales − cost − bonus) / sales × 100.
How the structure is chosen
- Invoice discount: simple, but lowers margin from the first order
- Threshold bonus: encourages volume, paid only if the target is met
- Category bonus: steers buying towards desired products
- Retroactive or from the threshold up: changes cost sharply at the threshold
Common mistakes
1. Bonus not accrued over time. Reported margin looks high all year, then drops at settlement; accrue it monthly.
2. Thresholds too easy or too hard. A threshold already met no longer motivates, one that is impossible does not matter.
3. Terms in different files. Negotiated discounts and bonuses sit in e-mails and spreadsheets, and invoices apply them inconsistently.
How it shows up in a CRM and B2B portal
On the CRMconnect B2B portal, commercial terms (price, discount, payment term) apply automatically per distributor. The Quoting & Negotiation module keeps the history of negotiated versions and internal approvals.
Real-world example
A customer buys 230,000 RON in a quarter, with a 5% threshold at 100,000 RON and 8% at 200,000 RON. The bonus is 230,000 × 8% = 18,400 RON, granted at quarter end. If the margin before bonus was 20%, after bonus it falls to 12%.
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Frequently asked
What is the difference between a discount and a bonus?+
A discount lowers the price on the sale invoice. A bonus is calculated after a period, on cumulative sales, and granted later if the agreed threshold is reached.
What is a volume bonus?+
A reduction given to the customer after purchases over a period reach a quantity or value threshold. The percentage is set in the contract and can rise in steps.
How does a bonus affect margin?+
A bonus reduces the supplier's net revenue, so real margin is lower than on invoices. It should be accrued monthly and included in the margin per customer.
How does it differ from a volume discount?+
A volume discount is the reduction given when quantity thresholds are exceeded, usually per order. A bonus is calculated over the cumulative period and granted retroactively or afterwards.
Where CRMconnect fits
Where CRMconnect helps
Commercial terms (price, discount, payment term) are applied automatically per distributor, and orders are placed directly in the portal against real stock.
Related terms
Volume Discount
A price reduction granted when quantity thresholds are exceeded, to encourage larger orders.
B2B commerceContract pricing
Individually negotiated per-customer B2B prices, different from list price, applied automatically at order time.
B2B commerceTrade Promotion
A promotional action between supplier and retailer/distributor: discounts, rebates, co-funding aimed at boosting sales.
B2B commercePayment Terms
The agreed conditions on when and how the customer pays: on delivery, net 30/60/90 days, with early-payment discounts.