A growth rebate is a rebate paid when purchasing or sales grow above a defined baseline - typically the prior year's volume. It is often paid on top of standard tier rebates, and can materially amplify the total rebate liability or entitlement.
How growth is measured
Common structures: year-over-year growth versus a fixed baseline, growth against a rolling comparison period, or growth in a specific product category or mix. Each definition produces different economic outcomes and different tracking requirements.
The compounding effect
