What is an INNBATE?
INNBATEs increase sales, profit and profit margin for Suppliers - while saving Buyers money.
"An INNBATE to a Buyer is like getting cash back when you use your bank card, except it is a portion of the savings the Supplier achieves by using INNOVO.
The deal is very simple - Buyers tell Suppliers when they are ready to buy through the platform. This enables the Supplier to sell unused spare capacity and acquire new customers at no additional expense. In return, for the Buyer making it easy for the Supplier to sell more, the Supplier must share some of its savings with the Buyer as a cash back INNBATE."
Simply put, an INNBATE is INNOVO's version of a rebate, but it is so much more powerful than that. Its foundation is a percentage amount based on the value of a transaction that a Supplier offers as a way of sharing the savings they achieve with a Buyer. INNBATEs enable Suppliers to offer a tailored deal with Buyers without disrupting the Suppliers existing price structure. It is important to note...
- INNBATEs are only paid once a transaction is concluded between a Buyer and a Supplier and the invoice is paid
- The relationship remains between the Buyer and Supplier - INNOVO is simply the facilitator allowing multiple Buyers to find the same Supplier
The INNBATE percentage is the figure that represents the portion of savings that a Supplier achieves through INNOVO that they would share with a Buyer that either is a first time Buyer or a customer who bought more. The INNBATE offer on INNOVO is confidential and is only disclosed to the Buyers that the Supplier responds to. An INNBATE is the means for the confidential transfer of savings from Suppliers to chosen new Buyers.
Through INNOVO, Suppliers are able to make more sales because INNOVO brings qualified leads (RFQs) – customers ready to buy. This means the Supplier has MORE sales with zero costs other than time spent on interacting through the platform.
This gives rise to THREE outcomes for Suppliers:
- INCREASED REVENUE
- INCREASED PROFITS
- INCREASED MARGINS
A triple WIN for any Supplier.
Through INNOVO, the Buyer is also a WINNER as they receive a cash payment - their share of the INNBATE - which is the key outcome for all Buyers:
The application of an INNBATE serves to increase sales, profit and profit margin for a Supplier.
By using INNOVO, since the Supplier does not need to invest in additional resource to increase its sales, it can share the benefit of achieved additional sales with Buyers who buy through INNOVO.
In the illustration (above, right), from its baseline in the left hand column, a supplier offers an INNBATE of 20% to enable sales of 25% of its unused (wasted) spare capacity (middle column) - sales increase by 25%, but because no additional “fixed” resources have been used (ie. fixed costs) and no additional selling costs have been incurred (INNOVO is free to use), the overall fixed cost % and selling cost % is reduced, increasing the profit from 100 to 125 and increasing the profit margin from 10% to 12%. At the same time, the participating buyers have benefitted from their share of a 20% INNBATE.
The illustration extends to the sale of all of the Supplier’s wasted spare capacity, providing further dilution of fixed costs per unit and selling costs per unit so that ultimately the supplier profit margin is increased from 10% in the baseline to 13% through the application of 40% INNBATE offer.