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Old 11-14-2012, 09:43 PM
philimba
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Default What's the good and the bad with rebate?

My supervisor asks today to explore the vendor rebate practice. She is not sure if this is common in IT vendors or value added vendors.

Manufacturer rebate was often seen in contract manufacturing sector. However, I am not sure about asking for rebate from HP, CDW or Staples for purchases of servers, laptops, digital storage, network switches, and cables. My assumption is that in these area, the price are very transparent and VAR is not the one that control and manage the product cost.

Vendor could become less aggressive in providing the best prices in the first place, expecting that we will ask for a cut into their profit. If we don't follow up getting the rebate, we could end up paying more.

Looks like vendor rebate may not be the best practice in IT procurement?
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