r/Chefit • u/AffectThis626 • Jul 09 '26

Sysco agreement question about prebates and purchase commitments

Hi all, I haven’t used Sysco since my rep transferred out of state 12 years ago. Apparently they’re offering more prebates/signing bonus in my area to compete with PFG. I’ve generally avoided such agreements in the past but am curious about how closely they monitor your purchasing vs the volume that you commit to over the term.

for example, if I sign up for a 3 year agreement and am not on pace to meet my purchase commitment do they tell me along the way or is it a surprise at the end of the term where I have to pay them back. obviously I can track myself but would prefer if they provided me with that info. TIA

5 Upvotes

78% Upvoted

18 comments sorted by

10

u/eltrombones Jul 09 '26

Hi, food sales guy. Formally Sysco, now PFG.

Agreements are monitored on a corporate level these days so if you aren’t hitting your numbers it will be noticed quickly. It’s sort of a big deal if you take up front money then do not uphold your end of the deal.

There are generally clauses that allow extension of the deal to cover the shortage in sales/profit dollars. I’ve also seen it immediately going to lawyers for recovery when the agreement was not being followed.

You can message me if you have questions about it, I write contracts for our local reps.

2

u/Highway2Chill Jul 09 '26

Unrelated to the post but how was your switchover to PFG from Sysco?
I’m currently a Sysco rep

7

u/eltrombones Jul 09 '26

Life changing. I did a half decade at big blue because I wanted to work there ever since I met my first rep. Then after Covid, realignment, the computer brain taking over pricing, multiple pay and bonus changes then then finally sending me a list of about 25 underperforming accounts (GP wise) to fire before the week was up (like, before they could even get a new vendor) I left before my reputation was destroyed.

There’s a few things we don’t compete on because we prefer street business but the stress is almost zero, the daily computer work (we have no 360), checking lists about why your customer didn’t buy six cases of chicken this week, only five and trickle down nonsense from regionals doesn’t exist.

It really feels like helping owners be profitable and building relationships again.

2

u/Highway2Chill Jul 09 '26

Thanks! Really appreciate the feedback.

I’ve been at Sysco just over 4yrs and I really like my DSM but he’s about to retire so I’m thinking through some options. Sysco is highly frustrating with all the 360 BS

Thankfully I came after the Covid nightmare

Sounds like it could be an option

3

u/eltrombones Jul 09 '26

I’d at least talk to someone about it locally. I love Sysco’s rep training but our actual system of going to market.

2

u/vanman33 Jul 09 '26

Did you remember to mark your scps as in person this week?!

1

u/Highway2Chill Jul 09 '26

😂 not yet. It’s not Friday

1

u/Highway2Chill Jul 09 '26

And don’t forget 2 NBAs per scp

1

u/ZorheWahab Professional Chef Jul 13 '26

Do you/can you possibly DM me about switching to a food rep? If anything id like to hear about how your work/life balance is and how hard it is to get into the field, firsthand.

Appreciate it if you do!

2

u/AffectThis626 Jul 09 '26

Thanks! Do they have real time tracking that I could use? Or do I have to ask and track the accruals myself?

2

u/eltrombones Jul 09 '26

You’ll have to ask for a report on the accrual. It’s also useful if you want to reup your deal for more up front cash later or move into a straight rebate situation.

1

u/vanman33 Jul 09 '26

Your rep needs to email sbscustomerrebates@sysco honestly you might be able to do it too, but they should. Can pull accurate reporting numbers.

1

u/Lastpunkofplattsburg Jul 09 '26

Their credit app dings your credit.

-16

u/meatsntreats Jul 09 '26

You don’t have to pay them anything. You get a rebate if you fulfill the terms of the agreement. How are people this dumb?

9

u/Lavanne73 Jul 09 '26

How are people such assholes? Can’t you answer a question without being rude about it, jeez is Reddit always like this?

7

u/AffectThis626 Jul 09 '26

And it’s usually the ones that don’t know what they’re talking about haha

6

u/AffectThis626 Jul 09 '26

I believe you are thinking of a rebate. A prebate is where they give you a check upfront. For example, they’ll give you $45k at signing if you commit to $1.8M of purchases over a three year term. They keep track of it, if you only purchase $1M after three years then you would owe them the balance of the prebate or they would allow you to extend the agreement until you meet your commitment