The Easy Way to Redeem Tobacco Rebates

Use your POS system to create reports to help you comply with manufacturer discount programs. 

September 23, 2021

Employee at Checkout

This article is brought to you by POS Nation. POS-Nation-Logo-Main_225.jpg

CHARLOTTE, N.C.—Are you missing out on tobacco manufacturer rebates? “Most retailers probably are because of the onerous reporting necessary to redeem these rebates,” said Spence Hoffman, vice president of sales and product development for POS Nation. “In addition, many independent retailers can view the entire process as too overwhelming to even try to comply, so they give up and leave significant money on the table.”

Modern POS systems with scan data programs allow retailers who sell tobacco products to provide significant discounts to their customers. In turn, retailers receive manufacturer rebates based on their volume. But all too often, retailers, especially smaller chains and independents, find the reporting aspect cumbersome to complete. “Technology has evolved to make this process less painful,” Hoffman said. “However, retailers might overlook what their POS systems can do to make this easier on the reporting side.”

Many POS systems can set up the customer discounts quite simply, whether it’s BOGO or mix-and-match promotions. “The tricky part is in the reporting, which must be submitted in a specific format for each tobacco manufacturer on a daily basis,” he said. “This is why retailers miss out on rebate money—compiling these reports manually is time-consuming and difficult.”

Hoffman outlined how a report could be wrong. “Data must be entered correctly for the promotion, including in the correct categories, then the data must be filled out on the right manufacturer form—and one small mistake can kick the report back to the retailer,” he said.

Instead of sweating over those details, Hoffman recommended finding a good POS system with scan data integration and support. “Data management and reporting are huge with a scan data program, and they’re always changing, so having a partner who can help you keep up is essential,” he said. “With a streamlined process, retailers will not be missing out on tobacco manufacturer rebates.”

This is the second installment of a two-part series about how POS systems can help retailers manage inventory and scan data reporting. Click here to register for a free webinar, “C-Store Management Trends and Best Practices,” on September 28 at 2 p.m. ET.

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