distributor advantage program - eaton enewsletter · pdf filebussmann series bussmann series...

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


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:


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


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%


> 95% of the shelf> 95% of spend

0.75% > 75% of shelf> 75% of the spend

0.25%


> 75% sales incategory

0.50% 50–75% sales in category

0.25%


> 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%


> 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


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.


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


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.


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%


0.50% 0.50% 0.75% 0.25%


2.50% 2.50% 0.50% 0.25%


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%


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%


1.00%

Rebate program overview model: All the program elements work together to give you the advantage.


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


• 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


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.

Follow us on social media to get the latest product and support information.Follow us on social media to get the latest product and support information.Eaton is a registered trademark.

All other trademarks are property of their respective owners.

Eaton1000 Eaton BoulevardCleveland, OH 44122United StatesEaton.com

© 2016 EatonAll Rights ReservedPrinted in USAPublication No. FL085001EN / CLCDecember 2016

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