It’s a common practice for large building material manufacturers to offer rebates to larger homebuilders. Many small to medium sized building material manufacturers don’t offer builders rebates. This may cause them to be at a disadvantage.
Here’s How to do a Builder Rebate Programs
Brian Lundberg, VP Business Development of Compendia, a company that validates and manages rebate programs for manufacturers has provided this guest post.
Surprisingly many Manufacturers have yet to establish a builder rebate program. Because it’s been such an effective sales and marketing vehicle through the years we thought a roadmap on how to establish your own would be worthwhile reading! It’s a scenic and profitable journey so let’s begin!
Where do you start?
1. Create your agreement identifying what items may be submitted for rebate with the corresponding dollar amount per item
2. Establish payment terms so the builder has the proper expectations and you optimize your cash flow
1. Contracted Builder provides closing list by community
a. List contains physical address / lot #
b. Date the lot closed escrow
2. Builder provides the initial subcontractor / contact information list by trade
3. Builder informs subs that the Manufacturer will be contacting them on the builders behalf to validate installations
1. Each sub is contacted requesting the installed component(s) information
a. Ie: Lennox HVAC, Model XYZ, Number of systems installed, confirmed installation date
2. A manufacture rebate form is prepared showing all required information for each community
a. Trade (HVAC)
b. What was installed (Heat pump, HVAC, Heat only)
c. How many systems / units
d. Corresponding installation subcontractor
i. Company Name
ii. Contact person
e. Rebate per item
f. Total number of units applying for
g. Total rebate amount
3. Audit the data for accuracy
a. Duplicates, closing dates, totals tally up correctly based on agreement
4. Issue Builder corresponding rebate
A builder rebate program may be something you want to consider.
Rather than doing trying to do it yourself, I recommend that you talk to a firm like Compendia to help you set up and manage your program. You can contact them at firstname.lastname@example.org .