If you're a wholesale distributor, some of your marketing budget may already be sitting unused in manufacturer accounts with your name on it. It's called cooperative advertising — co-op for short — and most distributors never claim what they're owed. Here's how it works.
The Basic Idea
Cooperative advertising is money manufacturers set aside to help their distributors and dealers promote their products. The manufacturer benefits when you sell more of their line, so they share the cost of the marketing that drives those sales. It's a standard practice across the construction supply chain — building products, roofing, plumbing, electrical, HVAC, tools, and more.
How the Funds Accrue
In most programs, a percentage of your annual purchase volume from each manufacturer builds up as co-op funds over the course of the year. The more you buy, the more marketing budget you accumulate. Those funds typically reset at the end of the program year — and anything unclaimed goes back to the manufacturer.
How Reimbursement Works
When you run marketing that features a manufacturer's products and follows their program rules, you submit proof of the activity — the ad, the placement, the invoice — and get reimbursed. Reimbursement rates commonly land between 50% and 75% of the eligible cost, usually credited toward your next order.
A Few Common Examples
- A distributor runs a branded product campaign co-funded by the manufacturer
- A dealer features a manufacturer's line in a direct-mail piece and gets reimbursed
- A local ad or landing page promotes a specific brand, qualifying for co-op credit
Why Most Distributors Leave Money Behind
Co-op programs come with paperwork, deadlines, and brand-compliance rules that differ by manufacturer. Busy distributors simply don't have the time to track accruals across a dozen suppliers, run compliant campaigns, and file claims before funds expire. So the money quietly evaporates.
Turning Co-Op Into Real Marketing
At A&B Consulting Group, we help distributors across the construction supply chain identify available co-op funds, run campaigns that meet each manufacturer's requirements, and handle the claims process — so your marketing budget stretches far further without spending an extra dollar. If you've never audited your co-op accruals, you're almost certainly leaving money on the table.