A key feature of DealTrack is its library of deal mechanism plug-ins, from which Enable’s system administrators will select and create permitted deal mechanisms specifically for your business’s needs, as part of the initial Onboarding process.
DealTrack uses deal mechanisms in order to define how rebate should be earned for a deal. When a user creates a deal, they must select a deal mechanism depending on how the rebate should be calculated for the deal.
It may be that a percentage is earned once a certain target turnover (e.g. trading partner spend) value is reached, or that a fixed amount of rebate is earned once turnover has increased from the previous year. Each of these options is available as a deal mechanism.
The two fundamental conditions for choosing a deal mechanism are knowing when rebate is earned and how rebate is calculated; the options for each are explained below.
The four options for when rebate is earned are as follows:
Guaranteed · This indicates that the rebate for this deal will always be earned (independent of turnover).
Target turnover · This indicates that the rebate for this deal will be earned when turnover targets (value) have been reached, e.g. trading partner spend surpasses £1,000,000.
Target volume · This indicates that the rebate for this deal will be earned when turnover targets (volume) have been reached, e.g. trading partner spend surpasses 10,000 units.
Growth · This indicates that the rebate for this deal will be earned when certain growth thresholds are met, e.g. trading partner spend is at least 10% more than last year.
The three options for how rebate is calculated are as follows:
Fixed · This indicates that the rebate amount earned is a fixed amount, e.g. £5000.
Percentage · This indicates that the rebate amount earned is a percentage of the turnover that applies to the deal, e.g. 5%.
Per unit rate · This indicated that the rebate amount earned is a ‘per unit’ rate for the volume of units of the turnover that applies to the deal, e.g. £1 per unit.
The table below demonstrates which of the above options map to which deal mechanism. Hence, once a user has chosen when the rebate is earned and how it is calculated, they should use this table to identify which deal mechanism they should select when creating a deal.
Lump sum and apportioned
The Lump sum and Apportioned variations of the “Fixed amount” / “Externally calculated” deal mechanisms above determine if the rebate earnings are just applied to the deal, or if they should be apportioned (spread equally) among the relevant turnover so that they appear in the granular reporting.
An externally calculated deal means that the value of rebate earning is calculated outside of DealTrack and can be updated at any point if necessary.
The table below explains the options in more detail:
Fixed percentage of price
The fixed percentage of price deal mechanism uses the Pricing App to determine the amount of rebate earned for a deal. It does this by taking each turnover line relevant to the deal and finding the Active Price for that product from the Price List and applying the configured percentage to it. If no such price exists then the earnings for this turnover line will be zero.
You can read more about the Pricing App here.
More information on deal mechanisms is available here or you see more on each individual deal mechanism from the links below: