Windward Insider Blog

Sell Through Allowances Ignite Sales and Improve Your Bottom Line

sell-through-allowances-ignite-sales-and-improve-your-bottom-lineProper use of Sell Through Allowances enables retailers to pass on rebates to their customers, promote on price discounts, or hang onto the funds to improve their bottom line, but they can be a nightmare to manage without the proper tools in place.  Business Management Software like Windward System Five on Cloud can help you manage this process, so you can bolster sales and improve your bottom line in the process.

What is a  Sell Through Allowance?

A Sell Through Allowance (STA) is a rebate that the manufacturer gives the retailer on specific products after they have been sold. The sale of the products must be accounted for and reported to the manufacturer. The manufacturer typically suggests a new retail price, but the actual retail price used is at the retailer’s discretion.

Why should my business participate in manufacturer STA's?

consumer-electronics-shoppersSimply put, big budget advertising.  Sell Through Allowances are a great way for you as an independent retailer to participate in national campaigns that are funded by the manufacturers themselves.  You are essentially tapping into the large advertising budgets of big brands and raking in the spoils.

Details to consider:

There are many factors that come into play when a business decides to play in the Sell Through Allowance game.  You'll need reporting and communication tools in order to fully take advantage of these rebates.

    • STA Type ($ discount, % discount, New Price)
    • Communicating STA's to your sales department
    • Accounting method (Reduction of Cost of Goods or Post as Income)
    • Billing method for STA's (A/R or A/P)
    • Taxation

Windward System Five on Cloud has the tools that you need to properly manage vendor Sell Through Allowances.  Here are some of the advantages that Windward's STA functionality provides:

  • Inventory costs can display net of the STA (Net Promo Cost) for the salespeople on the floor, since this  is a competitive closing tool and protects your  profit margins.
  • Sales of STA items during promotions reflect the Net Promo Cost for daily and monthly sales reporting to accurately indicate the store’s gross profit dollars.
  • Items that are returned after or during STA promotion take Net Promo Cost and salespersons commissions into account.

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Your landed inventory value in stock
is left unchanged by the STA.

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The STA management process allows for STA reporting at regular intervals, which means the back office stays organized, salespeople always have current information, and you maximize profits.

You might be thinking that this is all very helpful, however I have 400-500 Inventory items on Sell Through Allowance at any given time and their allowances change every month or two. How can I effectively manage this situation? The good news here is that Windward System Five has a STA Data Load function which can update your parts on mass.

Eliminate the hassle of dealing with STA's, realize the rewards, and spend more time SELLING!


If you are ready to put Sell Through Allowances into place, here’s what to do:

Windward-Professional-Services-white-background Windward clients please contact your Account Manager to talk about a Professional Services plan to get Floor Planning set up.  +1 (800) 633-5750

Or you can start by checking out this webinar where we will be reviewing the set up and use of the Sell Through Allowance (STA) feature. There will be a live demonstration with examples and a quick Q & A will follow.

Sign up for this Windward Webinar

Windward Webinars

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Other Resources include the Windward Learning Academy, which has courses specifically about Setting up and using STA's

Visit this Windward Self-Help Link for detailed instructions for the set-up and for various uses of Sell Through Allowances.

 


If you are not yet a Windward client, one of our Business Developers would be happy to talk to you about your current business challenges and see how Windward System Five can help.

 

Please reach out at +1 (800) 633-5750

or

Schedule a Live Demo


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