Understanding Skupos Engage promotions is important for successfully offering discounts to your customers.
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Co-Funded vs. 100% Brand-Funded
Co-funded Promotions: A co-funded promotion is one where the brand funds a portion of the discount issued to your customers.
For example, a "$1 Off" discount can be co-funded by the brand for $0.50. This means that you, the retailer, must fund the remaining $0.50.
Brand-funded Promotions: A promotion that is 100% brand-funded means that the brand will reimburse you for the full discount value issued to your customer.
For example, a "$1 Off" discount means the brand funds the full $1 off.
💡 Tip: Discount value refers to the value that the customer at your convenience store gets from the discount. Reimbursement amount refers to the value that you receive from the manufacturer for the discount value issued.
A manufacturer may customize their promotion by crafting their own discount rule. Here are some examples of discount rules:
Buy 2 and Get $1 Off
Buy 2 for $2.99
The first rule is common. The second rule is subtly different. What’s important to recognize is that the discount value depends on the original price of the items being discounted. We'll use an example to further explain.
The two promoted items at Store A cost $3.99, and the promotion is "Buy 2 for $2.99." The discount value for Store A is $1.00. Compare this to Store B, where the two promoted items cost $3.69. Store B's discount value is only $0.70.
What will each store be reimbursed? That depends.
If the brand is co-funding $0.50, then Store A will be reimbursed $0.50 and will fund the remaining $0.50 on its own. In contrast, Store B will be reimbursed $0.50 and will fund the remaining $0.20 on its own.
If the promotion was 100% brand-funded, then Store A would be reimbursed $1.00 and Store B $0.70.
You can imagine that some stores might increase the price of items to increase the reimbursement amount they receive. In this example, pricing the 2 items at $100 could result in a reimbursement of $97.01.
That won't work. Brands will only honor their promotion discounts if the item price falls within a predefined range of acceptable prices.
Also, some brands may only honor the promotion discount if there are no other discounts applied to the items being purchased by your customer. This is the classic “discount cannot be issued along with any other discount” rule.
❗ Alert: Increasing prices to boost reimbursement will be flagged as fraud. You will be removed from the promotion.