Shippers who ask for a Rebate Program

[EricG]

Anyone have any insight on best ways to proceed when a shipper ask a carrier to participate in a rebate program... i.e. x % of annual spend rebated back shipper at year end...

What metrics do you use to determine feasibility? Is it normal for a potential shipper to spring this on a carrier after the carriers bid is submitted?

How common is it for large MFG / Shippers to request a rebate program?

 

[Igor Galanter]

It's the same as "co-brockering", sister company and nephew's truck..
Hidden kickbacks camouflaged nicely...
IMHO..

 

[BPOVFB]

If it's after the fact, customer has not acted in good faith. I've used upfront as a sales technique - but that was for more specialized work vs a large DV Shipper (for example). Sounds fishy to me if its after the fact.

 

[loaders]

We have come across it before. In our case it usually involved a new traffic dept employee who was looking for a quick and easy way to prove his value to his employer. I seem to recall that we did offer them a percentage of their freight spend in the form of a rebate. However, we also increased their rates to compensate for this “rebate”. If the shipper is asking for this after you were awarded the business, then perhaps there is something fishy going on. If your rates were accepted as offered, why are they asking for more?

 

[Mario]

Why didn't they just say " Give me a kick back and you can keep the work" instead of using a bunch of fancy words to try and hide the truth! Ahh just figured it out!!!