What are PIP dollars?

[rjb1211]

I was reading Pentair's TradeGrade policy found this:

If a TradeGrade product is sold online, warranty will be limited to a 60-day limited warranty. Pentair will not be liable for any costs or expenses related to an extended warranty provided to a consumer beyond the 60-day limited warranty that Pentair will provide for such sales. Furthermore, no PIP dollars, if any, will be rewarded to the dealer for the purchase.

 

[ajw22]

PIP dollars is a sales incentive program for Pentair dealers. It gives then points for sales they can redeem for merchandise or trips. It rewards those who sell the most.

 

[Newdude]

It's proof you can never quite trust the dealers, because they make not only profit but also may make side incentives.

My PB pushed for Jandy real hard with pool #2, after being a Pentair snob for decades. (He could get all 3). He was unable to convince me that Jandy had reinvented the wheel, but I was entirely convinced he had better margins/incentives with Jandy.

 

[rjb1211]

PIP dollars is a sales incentive program for Pentair dealers. It gives then points for sales they can redeem for merchandise or trips. It rewards those who sell the most.

That it what I suspected. Is it significant? Using the IntelliCenter 5PIC40 (521905) as an example would it amount to $700?

 

[ajw22]

That it what I suspected. Is it significant? Using the IntelliCenter 5PIC40 (521905) as an example would it amount to $700?

I doubt it. But it depends. At the end of the year someone may need a sale to qualify for a bonus or a trip and will give a big discount to get the sales.

New car dealers have sales incentive programs and that is why you can maybe get a great deal end of quarter or end of year if that deal puts the salesperson or the store to qualify for a big reward.

 

[rjb1211]

PIP dollars is a sales incentive program for Pentair dealers.

I guess we need to define dealers. Are these only the companies that show up on Pentair website, or is it available to PBs or service company installing the products? I guess a related question is who do the pool builders and and service companies get the product from? Is that direct from Pentair or a dealer like Polytec?

 

[JamesW]

On July 31, 2000, SCP Pool Corporation (the “Company”), a Delaware corporation, completed its acquisition (the “Acquisition”) of the business of Superior Pool Products, Inc. (“Superior”), a Delaware corporation, pursuant to the terms of the Asset Purchase Agreement (the “Superior Purchase Agreement”), dated as of

June 14, 2000 among Arch Chemicals, Inc. (“Arch”), a Virginia corporation, the Company and Superior. The Superior Purchase Agreement was filed as an exhibit to the Company’s Quarterly Report filed on Form 10-Q for the quarter ended June 30, 2000. The following discussion is only a summary and is qualified in its entirety by reference to the Superior Purchase Agreement.

Pursuant to the Superior Purchase Agreement, the Company acquired substantially all of the assets and assumed certain of the liabilities of Superior for a purchase price of approximately $25 million, subject to adjustment. The purchase price was financed by additional borrowings under the Company’s revolving line of credit with LaSalle National Bank. The amount of the consideration was determined by reference to the book value of the assets acquired and as a result of negotiations between the Company and Arch. Prior to the acquisition, there was no material relationship among Arch or Superior and the registrant or any of its affiliates, any director or officer of the registrant, or any associate of any such director or officer.

The assets acquired from Superior include swimming pool supplies inventory and fixed assets used in the distribution of swimming pool supplies. The Company intends to sell such inventory in the ordinary course of business and to continue to use such fixed assets in the distribution of swimming pool supplies.

https://www.sec.gov/Archives/edgar/data/945841/000089155400002001/0000891554-00-002001-0001.htm

https://www.poolcorp.com/

https://www.scppool.com/

https://www.pool360.com/

https://www.encyclopedia.com/books/politics-and-business-magazines/scp-pool-corporation

 

[rjb1211]

On July 31, 2000, SCP Pool Corporation (the “Company”), a Delaware corporation, completed its acquisition (the “Acquisition”) of the business of Superior Pool Products, Inc. (“Superior”), a Delaware corporation, pursuant to the terms of the Asset Purchase Agreement (the “Superior Purchase Agreement”), dated as of June 14, 2000 among Arch Chemicals, Inc. (“Arch”), a Virginia corporation, the Company and Superior. The Superior Purchase Agreement was filed as an exhibit to the Company’s Quarterly Report filed on Form 10-Q for the quarter ended June 30, 2000. The following discussion is only a summary and is qualified in its entirety by reference to the Superior Purchase Agreement.

Interesting reading but I don't see how that answers my question unless you mean all Pentair products go through SCP Pool Corp.

 

[ajw22]

I guess we need to define dealers. Are these only the companies that show up on Pentair website, or is it available to PBs or service company installing the products? I guess a related question is who do the pool builders and and service companies get the product from? Is that direct from Pentair or a dealer like Polytec?

Pentair Partners

partners.pentair.com

Click on ENROLL

You will see there are DEALERs and DISTRIBUTORS

Pentair Partners

partners.pentair.com

 

[JamesW]

Interesting reading but I don't see how that answers my question unless you mean all Pentair products go through SCP Pool Corp.

Builders buy through wholesalers like SCP/Superior and others like Team Horner etc.

Pentair does not sell to individual Builders.

 

[ajw22]

Seems like Pentair Reward Program is for dealers and you can find dealers at...

Find a Dealer

Pentair offers smart, sustainable water solutions. Find a local Pentair dealer for your home or business water equipment, from pools to pumps to water treatment.

www.pentair.com

The typical definition is dealers need to have a retail storefront and sell to end users. Distributors sell wholesale to business customers for resale.

A builder may have a retail store and buy direct from Pentair for his builds and also sell through the storefront.

 

[JamesW]

The three main Manufacturers are Pentair, Hayward and Fluidra/Jandy.

The manufacturers try to get the Builders and Service companies to choose them as their primary manufacturer/brand.

The manufacturers offer various incentives like training, various forms of promotional prizes, marketing and promotional support, “Authorized” dealer status for sales, service, warranty etc.

Builders buy from the wholesalers like SCP/Superior who sell all brands.

The builders provide the receipts to show what equipment they buy for credits.

The manufacturers will provide some products directly.

For example, a service company might buy a warranty parts stocking package to be an authorized warranty center.

This contains parts commonly warrantied so that the service provider has the necessary parts like a warranty cell etc.

The same thing happens in other trades like HVAC where the manufacturers try to get exclusive or primary status and the company will be a “Trane” or “Carrier” shop.

 

[JamesW]

The biggest builders and retailers like Leslie’s might go directly to Pentair, but most builders are not big enough to buy from Pentair directly.

Most builders and service companies buy things as needed from the local supply wholesaler.

Unless you are buying in volume, you are probably not buying directly from Hayward, Jandy or Pentair.