Delivered pricing, deviations and rebates: how manufacturer deals work.
Three structures, one goal: a lower cost on the products you already buy. Here’s how each one reaches your invoice.
Most of what a restaurant buys is made by a manufacturer and delivered by a distributor. The distributor sets your price, but the manufacturer sets much of the cost underneath it. That makes manufacturers the second lever on food cost, and the one most groups never pull.
Manufacturer deals aren’t a catalog you pick from. They’re negotiated for a group based on what it buys, how much and where. The structure depends on the product and the manufacturer.
Three structures
Delivered pricing. The manufacturer sets the cost the distributor pays for your product. The distributor adds its margin, and that is your price.
Deviations. The distributor buys at its standard cost, takes the deviation amount off, then adds its margin. The saving shows up on every invoice.
Rebates. Your invoice price doesn’t change. The manufacturer sends a check directly to the group based on volume purchased.
Negotiating, then making sure it’s honored
A deal only matters if it shows up. Deviations need to be applied by the distributor on every line, delivered pricing needs to be reflected in the cost your margin is calculated on, and rebates need to be tracked against what you actually bought.
Angel negotiates these deals with manufacturers on behalf of each group, using visibility into the deals they write across many groups. Every invoice is then checked to confirm each deal is applied at the right price.
The long tail
Not every product has enough volume to justify its own deal. For those, aligning with a group purchasing organization, a book of deals backed by aggregated purchasing power, covers the long tail without separate negotiations.