tag:blogger.com,1999:blog-28450497.post1840599158199332672..comments2009-10-07T22:36:17.948-04:00Adam J. Fein, Ph.D.http://www.blogger.com/profile/12217252282643255442noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-28450497.post-60204964619251349992009-10-07T22:31:42.640-04:002009-10-07T22:31:42.640-04:00Actually, the 2% goes way back further than chargebacks. Chargebacks have never played a part in this "gift". In the past (OK, way back) wholesalers made an upcharge on sales, even chargeback sales. In fact, when contracting started manufacturers sold direct (no chargeback mechanism). Wholesalers ASKED to be let in on the sales and came up with the idea for chargebacks. -AAl Godleynoreply@blogger.comtag:blogger.com,1999:blog-28450497.post-2386214150152829722009-10-07T11:18:47.032-04:002009-10-07T11:18:47.032-04:002% is a historical gift indeed. The origin, I believe, goes back to manufacturers trying to respond to some of the wholesalers concerns around costs involved with handling chargebacks, etc. Unfortunately, they used much of this guaranteed profit to drop their pricing downstream, in the quest for top-line revenue and share growth. The same continues to occur in the FFS world.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-28450497.post-62106546859515067792009-10-07T09:54:17.070-04:002009-10-07T09:54:17.070-04:00I like the term prompt-pay terms...2% 30, net 31. Is one day really prompt pay? I was discussing this with a Trade Exec once and asked about removing the 2% and rolling it all into the IMA/FFS. He was mortified and refused to discuss it because "the wholesalers have already given this away to their customers". I found that very interesting. 2% is a big gift and I'd think a manufacturer should want to get more for that than just one day of faster payments. -AAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-28450497.post-61503090657951955872009-10-07T09:03:34.965-04:002009-10-07T09:03:34.965-04:00Can I presume you got a free Obama chia also?Anonymousnoreply@blogger.com