# Rebate income

A term used when buying hardware store.

Money from the buying group that arrives after the sale, and is part of the margin.

A meaningful share of a hardware store's gross profit does not come from the customer at all. It arrives later, from the co-op or buying group, and it depends on volume tiers, on program participation, and on the store remaining a member in good standing. That makes it the most fragile line in the margin: a [change of ownership](https://searchspheresource.com/glossary/change-of-ownership) can reset the tier, and a buyer who models the seller's rebate as recurring may be modeling somebody else's purchasing history. Ask for two years of rebate statements and the tier they were earned on.

Part of: Buying a Hardware Store (https://searchspheresource.com/guides/buying-a-hardware-store)

Source: https://searchspheresource.com/guides/buying-a-hardware-store/terms/rebate-income
Not dated: The same editorial definitions as the glossary, inside a trade.

Site index for machines: https://searchspheresource.com/llms.txt