Some Benefits and Drawbacks of Up-front Discounts versus Year-end Rebates From Rewards Programs

AN AGRACITY PERSPECTIVE

Rebates and reward programs have been around for many years, however in the past number of years many of the larger crop input companies have ramped up reward programs and rebates to incentivize farmers to purchase their products and maintain loyalty.

While every farm and farmer will have a different perspective on these programs, what are some of the pros and cons of these reward programs vs. getting a large up-front discount on AgraCity products? We have provided our perspective below, recognizing that the list may not be complete and that farmers and companies will have different viewpoints.

AgraCity offers Canada’s largest selection of affordable crop inputs at up to 40% less than brand name products.

AgraCity also offers great value beyond affordable prices. AgraCity now has a Product Performance Guarantee on most of the products we sell, plus we have full time agronomists on staff to help you with technical and agronomic support when you need it. Just call 1-833-832-7637.

BENEFITS

AgraCity’s Up-front Discounts

  • Available to all farmers and all farm sizes
  • Discounts compared to brand names can be substantial – up to 40% off depending on the product
  • Discount is easy to understand
  • Discount is taken off up front – no waiting
  • Discounts can reward volume purchases
  • Purchase decision can be based on best agronomic fit, not rebate
  • Supported by AgraCity

Reward Programs

  • Available to all farmers
  • Rebates as a % of purchase price may be in excess of 20% depending on volume purchased
  • Rebates increase the more you purchase (volume rewards)
  • Rebates reward multiple product purchases
  • On-line calculators are often available to help calculate rebates
  • Supported by the manufacturer

DRAWBACKS

AgraCity’s Up-front Discounts

  • Actual discount will vary by product
  • Often tied to specific product purchases
  • Programs may require purchase of one product to get rebates on other products
  • Is the purchase decision based on the best product fit or the best discount?

Reward Programs

  • Actual rebates for many farms may not be as large as advertised
  • Programs can be complex to understand
  • They reward very large farms that make large purchases. Small farm rebates will usually be lower
  • Payment is usually late in the year or early the following year
  • They usually require specific category purchases (i.e. seed, herbicides, or fungicides)
  • Programs may require purchase of at least one product to get rebates on other products
  • Is the purchase decision based on the best product fit or the reward program?