Cash is Better Myth

As I travel the country meeting with manufacturers and talking about Aftermarket Rewards, I get to hear plenty about other "incentive" companies that try to convince manufacturers to offer cash in order to incent end users to buy products. The problem with cash incentives is that they quickly become looked upon as entitlements. Not only that, but the amount of cash needed to incent an end user always creeps in an upward direction. That does a couple of negative things. It erodes your margins further and it cheapens how end users view your products. It a short time, this will lead them to the next manufacturers product who darkens their doorway. In other words, there is no loyalty to a product just because the end user has money thrown at them.

Aftermarket Rewards is a point based system that enables a coalition of manufacturers to award end users for buying their products. If you travel for work, stay in hotels and expense everything on a credit card, you probably enroll in a points programs that enables you to rack up miles in order to fly for free on a specified airline. You become a point junkie and are constantly seeking other brands to reward you for your purchase in order to earn more pionts so you can get that free flight faster.

Take a look at the link below for better clarification.

http://www.rewardlicious.com/PDFs/cash_is_best_myth.pdf