How can I boost my margins by optimizing rebates?


Low profit margins combined with the difficulties of rebate management are putting pressure on ag retailers. This is exacerbated by needing to maintain their foothold with a customer base under similar financial pressure, who are therefore looking to cut outgoing costs for their own business.

It is vital, therefore, for ag retailers to manage their businesses effectively ensuring the right products in the right volumes reach customers efficiently whilst optimizing available rebates. More and more businesses are now taking advantage of a fully connected supply chain – and the integrated data solutions that work with the supply chain – to ensure they do just that.

What does successful rebate management look like?

  • Complete visibility, even across consolidated businesses with different systems, to track purchases made in line with rebate requirements.
  • Ensuring unified and informed product recommendations from agronomists to better suggest products that help benefit both the customer and the business.
  • Greater control of stock movements and availability to fulfil customer demand.
  • Better awareness of rebate boundaries in order to adjust workflow and sales strategy as needed.
  • Identifying inefficiencies in the supply chain to better meet targets.

How do you get there?

Proagrica, the leading provider of digital solutions to the agricultural supply chain, has successfully worked with businesses across 5 continents, and invested heavily in the development of specialist tools to meet the changing requirements of ag retail.

“Let’s use an example,” says Lindsay Suddon, Chief Strategy Officer at Proagrica. “An agronomist, supported by an ag retail company, is providing their services to a large farm. The agronomist has to decide on a treatment programme and has a number of choices in terms of product. With proper visibility and connectivity between the supply chain, the agronomist would be able to recommend the best product as needed while also working in line with a retailer’s need to match rebate targets. Solutions like ours help drive that strategy.”

In essence, the ag retailer is able to continue delivering expert advice and product knowledge, while being mindful of necessary conditions for revenues and rebates. With an integrated solution, this will also allow a retailer to virtually include the input manufacturer in that conversation, where currently that’s not the case. All this is possible without compromising security or revealing personal data about the customer in question.

A solution that aids with rebate goals would harness and aggregate sales data through the POS system, before feeding back analytics to personalized dashboards with alerts and actions. This insight can be tailored to individual specifications, utilizing the various widget configurations and data functions available. The tools turn data into insight which, crucially, is actionable, putting businesses in the position to influence sales and marketing activity, whether that’s in-store or with the agronomist.

What is the future for successful ag retail businesses?

For ag retail organizations, rebates are an essential component of the profit margin. To hit certain thresholds, successful ag retailers will have to better understand how they’re doing, so they can make better operational decisions. A powerful integrated data solution can maintain updated purchase records and tie them to rebates delivering real-time visibility, directly aiding profitability. Playing out in real-time provides the opportunity to change tactics and manage cashflow if needed. The future of the supply chain will see connectivity become the norm, and intelligent data usage become more and more of a powerful asset. Ag retailers who take advantage place themselves at a distinct advantage to remain competitive and thrive.


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