Cost Control

Do GPOs keep rebates — or pass them back?

By CORE Insights Group 3 min read

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It depends on the GPO. Some keep the rebates and allowances suppliers pay — that's how they earn. CORE does the opposite: it passes 100% of every rebate and allowance back to you, onto your books, with no hidden margin. The savings CORE negotiates are yours, in full.

CORE provides back — it doesn't keep.

  • 100% pass-through. Every rebate, allowance, and discount CORE negotiates goes back to you.
  • On your books, not CORE's. The savings land where they belong — with the operator who bought the volume.
  • No hidden margin. CORE is paid by a transparent fee, not by quietly keeping a slice of your rebates.

What are rebates and allowances?

In foodservice purchasing, rebates and allowances are payments that suppliers and manufacturers return based on the volume bought — in effect, a portion of the price handed back after the sale. Because they're settled behind the scenes rather than on the invoice, the operator often can't see how much was paid — or who ended up keeping it.

That invisibility is exactly where the question matters. When a buying group negotiates a rebate on your volume, the savings should be yours. Whether they actually reach you depends entirely on the group's model.

Kept by the middleman, or returned to you.

Rebates kept

The intermediary retains some or all of the rebates and allowances suppliers pay. It's a revenue stream for them — and a savings stream you never fully see.

CORE's way: rebates returned

100% of every rebate and allowance is passed back to you. CORE earns a transparent, agreed fee for the work — never a markup on spend — so your savings stay yours.

"We pass 100% of every rebate and allowance back to you. CORE360 runs on a transparent, agreed fee — never a markup on your spend." — From the CORE360 program

See exactly what comes back to you.

A short conversation shows how CORE's full rebate pass-through and transparent fee work out on your numbers — with nothing kept behind the scenes.

Frequently asked questions

Does CORE keep the rebates, or pass them back?

CORE passes them back — 100% of every rebate, allowance, and discount it negotiates lands on your books, not CORE's. There is no hidden margin.

What are rebates and allowances in foodservice purchasing?

They are payments suppliers and manufacturers give back based on the volume purchased — effectively a portion of the price returned after the fact. Because they are paid behind the scenes, who ultimately keeps them is often unclear to the operator.

Why do some buying groups keep the rebates?

For some intermediaries, retained rebates are how they make money. The risk for an operator is that the savings a group negotiates never fully reach their books. CORE's model removes that ambiguity with full pass-through.

How is CORE paid if it gives the rebates back?

CORE360 runs on a single transparent, agreed fee for managing your procurement — never a markup on your spend. That keeps CORE's pay separate from your rebates, so passing 100% of them back doesn't cost CORE its margin.

How do I know I'm actually getting the rebates?

Transparency. CORE gives full visibility into what you actually pay and what you get back, so the savings show up on your books rather than disappearing into a middleman's.

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