How to create an electrical incentive program
An electrical brand sells through dealers and retailers, but the product in the wall is usually chosen by the electrician. A good incentive program rewards each of these people for the thing they actually control. This guide walks through the setup, in the order the decisions have to be made.
To create an electrical incentive program, decide which behaviour you want from electricians, retailers and dealers, put a unique QR code on each coil, switch box and MCB so every sale can be verified, set a reward per unit that fits your margin, and pay instantly by UPI in the electrician's language. Dealer and retailer schemes then run on invoices and proof of purchase, calculated on one engine rather than in separate spreadsheets.
Step 1: Decide who you are rewarding, and for what
Electrical has more categories in one bag than most industries. Wires and cables are price-led and bought in coils, switches and modular plates are chosen on design, MCBs and distribution boards on trust, fans and lighting partly by the end customer. Before you design anything, write one line for each audience:
| Audience | What they control | Behaviour to reward | Proof |
|---|---|---|---|
| Electrician | Brand choice at site, especially in wires, switchgear and MCBs | Fitting your product, trying a new category, staying active | Scan of the per-unit QR code |
| Electrical retailer | What sits on the shelf and what gets suggested at the counter | Stocking range, buying regularly, buying the focus category | Distributor invoice, bill photo with OCR, or scan |
| Dealer or distributor | Credit, stock depth and reach into retailers | Volume, growth, category mix, timely payment | ERP invoices and collections |
| Electrical contractor | Brand on project sites over months | Specifying and buying your brand on a project | Project invoices tied to the contractor |
If you try to reward everyone for everything, the budget spreads thin and nobody changes behaviour. Most brands start with the electrician plus one channel tier, then add the rest.
Step 2: Code the product, unit by unit
An electrician program lives or dies on proof. Printed coupons get collected by shop staff, photocopied or traded. A unique QR code on each unit, bound to the first person who scans it, makes every reward traceable. Decide the unit for each category: per coil for wires, per box or per piece for switches, per piece for MCBs and RCCBs, per carton or per piece for fans and lights. The same code can also be checked by a customer for genuineness, which matters in a category where counterfeit wire and MCBs sit on the same shelf as the real thing.
Step 3: Set the reward per unit
Work backwards from margin, not from what you think sounds attractive. Fix a budget as a share of the category's net realisation, then split it across SKUs. Higher-margin and push categories (modular switches, MCBs, premium wire) can carry a higher reward than commodity lines. Keep the numbers simple enough that an electrician can repeat them: ₹5 on this box, ₹40 on that coil.
Add one or two levers on top: a bonus for scanning a new category for the first time, and tiers that lift the per-unit rate for electricians who stay active across the year. Tiers do more for retention than a large one-off offer.
Step 4: Choose how the reward is paid
Electricians generally prefer cash in hand to catalogue points. Instant UPI to the bank account linked to their mobile number works well for routine scans. A catalogue of products and gift cards still has a place for larger milestones, such as a tool kit at a yearly threshold. Whatever you choose, the payment should land within minutes of the scan, not at month end. Read electrician incentive program ideas for reward formats beyond cash.
Step 5: Design the dealer and retailer side
Electrician scans pull product through the counter, but the counter still needs its own reason to stock you. Retailer schemes are usually slabs on monthly purchases, range schemes for carrying a minimum number of SKUs, and focus-category schemes. Dealer schemes add growth over last year, category mix, collection-linked rewards and cash discounts. Our guide to retailer schemes in electrical covers the common kinds. Write each scheme as a rule with eligibility, period, slabs and settlement, so it can be configured and calculated daily.
Step 6: Plan languages, support and tax
Electricians across states read and speak different languages, and many prefer voice to typing. Plan for scheme explanations, support and messages in the main languages of your markets. On tax, payouts to electricians and channel partners may attract TDS under section 194R and rewards may have GST implications; confirm the treatment with your tax advisor before launch.
Step 7: Pilot in one region, then roll out
Pick one state or two districts with a few distributors and a few hundred electricians. Run for 60 to 90 days, track active scanners, repeat scans, retailer participation and cost per unit, then adjust the reward card before the national rollout. A pilot is also where you discover packing-line problems with code application.
How Unotag supports an electrical program
Unotag provides per-unit QR codes that electricians scan on WhatsApp or the app, with first-scan binding and duplicate blocking, instant UPI payouts or points, a rewards catalogue of over 10,000 products, tiers and badges, and voice-first support in Indian languages. The same platform runs dealer and retailer scheme calculation from your ERP invoices, so electrician, retailer and dealer programs share one set of data. See the electrical industry page for how this fits wires, switchgear, fans and lighting.
Key takeaways
- Write one line per audience: what they control, what you will reward, and how it is proved.
- Use a unique QR code per coil, box or piece so every reward is traceable and duplicates are blocked.
- Set rewards from margin by category, keep them easy to repeat, and pay by UPI within minutes.
- Run dealer and retailer schemes on invoices and proof of purchase, configured as rules.
- Pilot in one region for 60 to 90 days before scaling, and confirm tax treatment with your advisor.
Frequently asked questions
What is an electrical incentive program?
It is a set of rewards that an electrical brand gives to electricians, retailers and dealers for choosing, stocking and selling its wires, switches, MCBs, fans and lights, usually tracked by QR codes on products and invoices in the channel.
How much should an electrical brand pay electricians per unit?
Work backwards from the category margin. Commodity wires carry a lower reward per rupee of sale than modular switches or MCBs. Keep the reward card simple and test it in a pilot before national rollout.
Should electricians get cash or points?
Most electricians prefer instant cash through UPI for routine scans. Points and a catalogue work better for yearly milestones and tier rewards.
How do you stop fake scans in an electrician program?
Use a unique code per unit that binds to the first scanner and blocks repeat scans, and watch for unusual patterns such as many scans from one location in minutes.
Do retailers need a separate scheme?
Yes. Electrician rewards pull demand, but the retailer needs its own reason to stock range and buy regularly, usually purchase slabs, range schemes and focus-category schemes proved by invoice or bill photo.
Is TDS applicable on electrician rewards?
Rewards and benefits to business persons may attract TDS under section 194R. The treatment depends on the structure, so confirm with your tax advisor.