What a special pricing agreement is
A special pricing agreement lets a distributor sell a manufacturer’s products below normal pricing — for a specific contractor, project or quantity — so the distributor and manufacturer can win the business together. Manufacturers use different names for these arrangements and different processes for them.
A common pattern works like this:
- The distributor buys the product at its normal cost.
- It sells to the contractor at the special price the agreement allows.
- It then claims the difference back from the manufacturer — often called ship-and-debit.
The margin on those sales depends on step three. An agreement used but never claimed can turn a profitable sale into a loss.
Where money slips away
- Agreements live in email threads and spreadsheets, so the quote desk doesn’t know they exist.
- The special price is given, but the agreement reference isn’t recorded on the order.
- Eligible sales are never matched to an agreement, so no claim is made.
- Claims are submitted late, in the wrong format or without required details, and are rejected.
- Agreements expire mid-project, and sales continue at the special price anyway.
- Quantities run past the agreed limit without anyone noticing.
Step 1: Capture every agreement in one place
For each agreement, record:
- Manufacturer and agreement reference number
- Customer or project it applies to
- Products, with special prices or discounts
- Quantity limits, if any
- Start and expiry dates
- Claim rules: deadlines, required documents and submission method
- Who at your company owns it
Step 2: Make agreements visible at quote and order entry
- When your team quotes or enters an order for that customer or project, the matching agreement should be visible.
- Put the agreement reference on each eligible order line, not just in someone’s notes.
- Price from the agreement, so the quoted price and the claimable price match.
Step 3: Match eligible sales to agreements
- Regularly compare sales against active agreements to find every eligible line.
- Flag sales at special prices with no agreement reference — they may be unclaimed, or given without authorization.
- Track quantity used against each agreement’s limit.
Step 4: Submit claims promptly — and correctly
- Follow each manufacturer’s terms: timing, format and supporting documents such as invoices to the end customer.
- Submit on a regular cycle, well inside each deadline.
- Check before sending: agreement reference, customer, products, quantities and prices all match.
Step 5: Track every claim to payment
Record each claim’s status — submitted, paid, short-paid or rejected — and reconcile payments and credits against what you claimed. A claim isn’t finished until the money arrives.
Step 6: Fix rejections quickly
- Record the rejection reason for every rejected or short-paid claim.
- Correct and resubmit where the manufacturer allows it.
- Fix the cause: most rejections trace back to a missing reference, an expired agreement, the wrong customer or a missed deadline.
Step 7: Watch expiry dates and limits
- Get warnings before agreements expire, so you can request an extension while the project is still active.
- Watch quantity limits as orders come in.
- Stop quoting special pricing once an agreement has expired or run out, unless it’s been extended.
Step 8: Review regularly
Each month, look at:
- Unclaimed eligible sales
- Rejections and their reasons
- Agreements expiring soon
- Margin by agreement — whether each one is delivering what it should
Common mistakes
- Keeping agreements where the quote desk can’t see them
- Giving the special price without recording the agreement reference
- Assuming someone else submitted the claim
- Missing claim deadlines
- Selling at the special price after the agreement has expired
- Treating rejected claims as lost instead of fixable