Canon Eliminates All Pricing Programs and adds Chargebacks?

CUSA has traditionally had very confusing pricing structures that include - off-invoice, buying levels, strategic pricing. strategic vertical pricing, among many others type discounts that come off of their "base dealer price" of any particular mainframe or solution.  The new promo was released yesterday for Q1... some of those discount structures have been eliminated and others renewed.  It is my understanding that the percentage base discount to a dealer will reflect directly on the level of revenue commitment given to CUSA from a given dealer, annually. However, they have not totally implemented the new plan at this point.  So far, just a couple of tweaks here and there.

Enough indys are screaming at CUSA and CUSA should see a slight drop in sales I'd imagine.  Ultimately it's giving them a way to give CSA (The old Canon Business solutions) much better pricing than their dealers.  More to come I'm sure, but much like their pricing changes they've issued before, this too shall pass.  That or the Indys second lines will see a significant bump in sales.

I met with Canon today. My rep said she had heard a lot of negative feedback from the dealers. It is easier to manage from an admin perspective, but I feel like this is a penalty to the smaller dealers. Almost seems like a program to where the big dealers get bigger and the small and medium dealers stay the same or have a little bit of change. Overall, I am not impressed.

Art Post posted:

Why do you think it's a penalty to smaller dealers?  Would the smaller dealers also be less competitive?

I think the biggest thing  the way I understand it is that you now have to hit a number to get any kind of rebate and then if you don't hit it you get charged back. To get a rebate they are basically double our quota each quarter. 

Of course I just got an email this morning that said canon was already tweaking it based on dealer feedback so we will see what happens.

Not knowing a whole lot of how the other manufacturers go about their pricing/promotions, it seems as though we all go through this turbulence every other year or so.  The manufacturers think they know whats best, get push back/drop in sales/these kinds of discussions across the country, and "tweak" pricing.  Most of the time it's back to what it used to be and they carry the party line of "we listened to our dealer community".......  Just my two cents.  

We commit to the 50-250k range. We have some percentage off each device....it varies by series. Some quarters we do 150k with them, some quarters we do 90 or 100k. Just depends on what we decide to warehouse, which is rarely necessary as sometimes we get the equipment the next morning if ordered early enough. 

I can't remember exactly how the charge backs work but it was some percentage of what you had gotten back throughout the quarter versus how much you fell short.

We thought it would be a gamble to do that so we chose to do the 50k to 250k and hopefully look really good in canons eyes at the end of each quarter  

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