A powerful partnership Distributor Advantage Program Eaton Distributor Advantage Program 2017
A powerful partnershipDistributor Advantage Program
Eaton Distributor Advantage Program 2017
Eaton is more focused and capable than ever before, providing solutions to today’s—and tomorrow’s—most critical electrical power management challenges.
Better
2 EATON Eaton Distributor Advantage Program
Better
Advancing industry, new technologies, and complex processes are all driving a growing demand for, and the cost of, electrical power.
Our experience and commitment to our distributer partners lets us see more possibilities and better opportunities to enable our customers to more effi ciently manage their energy consumption, increase uptime, lower costs and help keep personnel, equipment and data safe.
Supporting your commitment to customers
It’s not enough to just provide products and services; we intend to earn your business by helping you grow your business, profi tably. With Eaton, you’ve chosen a partner committed to your success—helping you increase productivity, manage cash fl ow and build your brand.
With the largest fi eld sales force in the market, we leverage our broad customer relationships to bring you added value. Plus, the Eaton Distributor Advantage Program not only provides the financial incentives to keep your business growing, but also offers you access to the experts, promotional programs and a robust planning process that helps strategically align our businesses.
Along with training programs and advanced project management support, you need access to tools and resources that increase productivity—up-to-date information on your orders, new product introductions, promotions and more are readily available through our My.Eaton.com secure, self-service website.
By representing some of the electrical industry’s most respected names, you have access to a portfolio of solutions that deliver exceptional customer benefi ts unmatched in the industry. Our continued investment enables us to create a positive mix of opportunities and solutions for a broad range of customer types.
Unmatched demand creation
Efficiency for greater productivity
Market leadership driven by premier brands
Plus, you have the support of an organization focused on serving you as well as a comprehensive annual planning guide and process designed to drive programs that grow your business.
Our focus is on helping you achieve:
together.
3EATON Eaton Distributor Advantage Program
Eaton’s Distributor Advantage Program helps you use our market-leading brands, product innovation and strong sales support organization in combination with your market knowledge, customer relationships and local inventory to grow your business. The program recognizes and rewards you for your volume of business, your commitment and loyalty to our broad range of products and the growth you achieve.
Our focused channel organization and robust financial incentive platform combined with strong planning and marketing programs proves our dedication to helping you maximize your growth and profitability.
The details…
To qualify for the program you must:
Stock, promote and sell the products included in the program
Purchase a minimum of $100K in program-eligible products
Meet 80% of prior year’s sales
Be in good standing with Eaton’s accounts receivable departments
Use Eaton’s eCommerce platforms including EDI, Vistaline on the Web, Bid Manager, and/or C3
The five incentive elements of the program are:
Base volume
Loyalty
Growth
Business development
Bid Manager order entry
A powerful advantageA powerful advantage
4 EATON Eaton Distributor Advantage Program
A powerful advantage
A determination of your eligible categories will be provided as part of your individual program at the beginning of each year and evaluated throughout the year. Any changes to supportive product categories must be made prior to October 1st of the program year.
B-Line seriesBolted framing
Electrical enclosures
Fasteners
Flextray
Metering
Seismic
Wireway
(excludes cable tray)
Bussmann seriesBussmann series electrical fuses and fusible platforms
Edison electrical fuses and fusible platforms
Circuit breakers and control productsBolt-on/Plug-on miniature circuit breakers
Definite purpose control
OI, PLCs and SmartWire-DT
IEC power control and accessories
IEC pushbuttons
Industrial and IEC miniature circuit breakers
NEMA power control and accessories
Sensors and limit switches
Series C molded case circuit breakers
Series G molded case circuit breakers
Soft starters
Standard enclosed control
Standard pushbuttons
Variable frequency drives
Crouse-Hinds series
Commercial: Excludes solar combiner boxes and solar wiring harnesses
Industrial: Industrial fittings, Control and apparatus, Cable glands, Plugs and receptacles (excludes Interconnect), Industrial lighting
Lighting solutionsRecessed: Halo, Halo Commercial, Halo Track, Iris, All-Pro and Portfolio
Outdoor: Lumark, All-Pro Outdoor Security and Worklights, McGraw-Edison, Streetworks, and Poles
Ambient: Metalux, Lumark and All-Pro
Exit and emergency: Sure-Lites, Atlite and All-Pro
Lighting controls: Greengate sensors, room controllers and distributed low-voltage power modules and cables
Power quality productsSingle- and three-phase UPS <200 kVA
The ePDU (enclosed power distribution units)
G3 platform of products
ePDU G3 Basic models
ePDU G3 Metered Input models
ePDU G3 Managed models
Surge/power conditioning
Standard distribution equipment and residential productsAir conditioning disconnects
BR loadcenters and breakers
CH loadcenters and breakers
Control and encapsulated transformers
DTDT ventilated transformers
Enclosed breakers
Pow-R-Stock panelboards
Residential advanced products (surge suppressors, generators, transfer switch)
Residential metering
Switching devices
Wiring devicesCommercial
Industrial
Residential
A powerful advantageThe participating product categories:
5EATON Eaton Distributor Advantage Program
The Distributor Advantage Program has five main incentive elements—base volume, loyalty, growth, business development and Bid Manager order entry. Provided you meet program qualifiers, incentive is paid on all product categories that are supported. The incentive is calculated on both stock and drop shipments, provided a minimum 40% stock-to-total sales ratio is maintained across all supported categories. This same ratio and calculation applies to all incentive elements.
Product categories IncentiveStock factor Drop factor
B-Line series 1.25% 1.25%
Bussmann series 1.75% 1.75%
Circuit breakers and control products
0.50% 0.50%
Crouse-Hinds series— Commercial
2.50% 2.50%
Crouse-Hinds series— Industrial
1.50% 1.50%
Lighting solutions 1.00% 1.00%
Power quality products 0.50% 0.50%
Standard distribution equipment and residential products
0.50% 0.50%
Wiring devices—Commercial and industrial
3.25% 3.25%
Wiring devices—Residential 2.00% 2.00%
1. Base volume
Calculated at the distributor parent-level and based on net invoiced sales as defined above.
A powerful incentiveA powerful incentive
6 EATON Eaton Distributor Advantage Program
A powerful incentiveA powerful incentive2. Loyalty
Based on the commitment level by branch in each supportive product category, loyalty is calculated based on net invoiced sales. Loyalty is determined at the beginning of the year and validated throughout the year. Any changes to loyalty levels must be made prior to October 1st of the program year.
Loyalty Tiers—All distributor locations will begin the new year in the same loyalty tier categories they finished in the prior year. If your commitment to any of our product categories changes during the year, the loyalty tiers will be adjusted accordingly.
In some product categories, such as Lighting solutions, you will be required to make an annual commitment in order to retain that tier.
Category Tier 1 Tier 2Description Incentive Description Incentive
B-Line series 80% stock support on 2 or more lines
0.75% 80% stock support on 1 line
0.25%
Bussmann series > 90% stock support 1.00% 50–90% stock support
0.50%
Circuit breakers and control products
> 95% of the shelf> 95% of spend
0.75% > 75% of shelf> 75% of the spend
0.25%
Crouse-Hinds series— Commercial
> 75% sales incategory
0.50% 50–75% sales in category
0.25%
Crouse-Hinds series— Industrial
> 90% sales incategory
0.50% 70–90% sales in category
0.25%
Lighting solutions Support 4 of 5 categories*
1.50% Support 3 of 5 categories*
0.50%
Power quality products > 75% of spend 0.50% > 50% of spend 0.25%
Standard distribution equipment and residential products
> 95% of the shelf> 95% of spend
0.75% > 90% of shelf> 75% of the spend
0.25%
Wiring devices—Commercial and industrial
80% shelf space in at least 1 category; 50% shelf space in second
2.00%
* Lighting categories include: Recessed, Outdoor, Ambient, Exit and emergency and Lighting controls
7EATON Eaton Distributor Advantage Program
Eaton calculates BDF based on the current year purchases of program-eligible products. Distributors who invest these funds wisely to drive growth will have even more BDF to use throughout the year. BDF should be spent on activities that foster development and create demand, including local marketing, training, and promotions. BDF funds are reimbursed to the distributor based on submitted invoices for
approved expenditures. At the beginning of each year, a fund is created based on planned current-year purchases of program-eligible products. A minimum of 40% of a distributor’s BDF total must be spent and claimed prior to June 30. Any unspent balance of the 40% will be forfeited. No further adjustments will be made to the fund after June 30.
Reimbursement schedule Reimbursement percentage
AMP meeting expenses 100%
Co-branded signage with approved Eaton branding A 100%
Eaton calendar program 100%
Eaton-developed marketing campaigns 100%
Eaton training: tuition for learning and development courses, local Eaton product training and associated travel expenses
100%
ECCN enrollment of sponsored contractor 100%
Product demos for training and/or promotional displays 100%
Promotional merchandise via My.Eaton.com’s merchandising page
100%
Eaton product advertising A 75%
Eaton-exclusive open houses / local events A 60%
Tradeshow participation with exclusively Eaton products A 60%
Distributor branch-based promotions 60%
Calendars via a local vendor A 60%
IDEA/IDW annual subscription fee 50%
Promotional merchandise via a local vendor A 50%
Special customer events (approval required from channel manager)
50%
4. Business development funds*
3. Growth
Year over year growth
Incentive
> or = 15.0% 2.0%
> or = 10.0% 1.0%
> or = 5.0% 0.5%
Business development funds
0.50%
The growth tier is determined by comparing all net eligible invoiced sales (stock and drop back to dollar one assuming the 40% ratio is met) aggregated across all supportive categories at the distributor parent level from prior year to current year. The incentive is calculated based on growth tier and net invoiced sales.
A If other suppliers are included, your reimbursement percentage will be adjusted to reflect Eaton’s portion of the total cost.
Eaton reserves the right to limit a distributor’s BDF spending to no more than 50% usage in any one reimbursement category during the calendar year.
*More details on business development fund reimbursement rules and processes can be found under the Distributor Advantage Program section of My.Eaton.com.
8 EATON Eaton Distributor Advantage Program
5. Bid Manager order entry
Products included in Bid Manager order entry incentive
BR loadcenters & breakers
CH loadcenters & breakers
Control and encapsulated transformers
Customer Manufacturing Solution Centers’ panelboards and switchboards
Dry type transformers
Enclosed breakers
Enclosed variable frequency drives
Integrated facility systems (IFS)
Panelboards
Residential metering
Standard enclosed control
Switchboards
Switching devices
Bid Manager order entry
1.00%
Bid Manager is a configuration tool that gives you the ability to create unique bills of materials and layout drawings using the same web-based pricing tools used by Eaton’s sales teams (see eligible products list below). The jobs you create and submit directly to our plants can be manufactured and drop shipped to your customers or to stock and are eligible for a 1.00% payout.
9EATON Eaton Distributor Advantage Program
Growth
Year over year
Incentive
> or = 15.0% 2.0%
> or = 10.0% 1.0%
> or = 5.0% 0.5%
Product categories Base volume Loyalty
Stock factor
Drop factor
Tier 1 Tier 2
B-Line series 1.25% 1.25% 0.75% 0.25%
Bussmann series 1.75% 1.75% 1.00% 0.50%
Circuit breakers and control products
0.50% 0.50% 0.75% 0.25%
Crouse-Hinds series— Commercial
2.50% 2.50% 0.50% 0.25%
Crouse-Hinds series— Industrial
1.50% 1.50% 0.50% 0.25%
Lighting solutions 1.00% 1.00% 1.50% 0.50%
Power quality products 0.50% 0.50% 0.50% 0.25%
Standard distribution equipment and residential products
0.50% 0.50% 0.75% 0.25%
Wiring devices— Commercial and industrial
3.25% 3.25% 2.00%
Wiring devices—Residential 2.00% 2.00% 2.00%
Bid Manager order entry
1.00%
Rebate program overview model: All the program elements work together to give you the advantage.
Business development funds
0.50%
The following program updates went into effect on January 1, 2017. Please be aware of these changes for the 2017 program year and beyond:
“In good standing” definition update
• Distributors must be in good standing with Eaton’s credit department. This includes but is not limited to:
• No open invoices greater than 6 months old
• No disputed invoices greater than 12 months aging
• Distributor must be consistent with adherence to Eaton’s payment terms
• Eaton reserves the right to deduct past-due balanced with aging of 12 months or greater from year-end EDAP incentive payment
Year-end and minimum purchases
• Eaton reserves the right to limit December orders so as not to impact year-enddemand planning and fulfillment resources
• Distributors must have a minimum of $100K in program-eligible purchases toparticipate in EDAP
• Distributors with program-eligible purchases totaling less than $200K must have atleast 50% of their total at Tier 1 loyalty
Business development funds
• A minimum of 40% of a distributor’s BDF total must be spent and claimed prior toJune 30. Any unspent balance of the 40% will be forfeited
• All BDF claims must be submitted within 90 days of invoice date
• All BDF claims must be submitted by January 15 of the following year for activitiesthat occurred during the eligible calendar year
• Eaton reserves the right to limit a distributor’s BDF spending to no more than 50%usage in any one reimbursement category during the calendar year
10 EATON Eaton Distributor Advantage Program
A program built to your advantage from a partner committed to your success.
Eaton is a power management company with 2015 sales of $20.9 billion. Eaton provides energy-efficient solutions that help our customers effectively manage electrical, hydraulic and mechanical power more efficiently, safely and sustainably. Eaton has approximately 97,000 employees and sells products to customers in more than 175 countries. For more information, visit www.eaton.com.
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© 2016 EatonAll Rights ReservedPrinted in USAPublication No. FL085001EN / CLCDecember 2016