Design channel incentives
A distributor can be rewarded for placing stock, for selling through to an end buyer or for servicing the account. Choose a measure that matches the behaviour you need and can audit.
Worked example
A tool maker pays a rebate on shipments and sees dealer orders jump at quarter-end. Warranty registrations stay flat. A smaller installation rebate plus proof of reorders gives more evidence that tools reached workshops.
Change the assumption
Dealers earn a rebate for initial shipments and the quarter closes tomorrow. What evidence can distinguish sales from inventory loading?
Check the reasoning
Compare serial numbers or end-customer receipts with dealer inventory and returns. Check reorders after the rebate window and avoid crediting the same unit twice.
Check your reasoning
Why can sell-through incentives still be gamed?
Reveal the explanation
Duplicate registrations and transfers between dealers can look like fresh demand. Reconcile serial numbers, returns and invoices.
Try the same framework in a different case
Explore worked stories in the reading room · Practise the next analysis