How to create a TMT steel incentive program
TMT bars are priced almost daily, sold through distributors and dealers on credit, and chosen on site by contractors, fabricators and the engineers who sign off the grade. A steel incentive program has to work in tonnes rather than rupees of price, reach people who never see your invoice, and help a home builder tell your bars from look-alikes. This guide sets it up step by step.
To create a TMT steel incentive program, set dealer and distributor schemes per tonne so they hold when prices move, decide how secondary sales from distributors to dealers will be proved, put a unique QR code on each bundle tag so contractors, fabricators and bar benders can scan to earn and home builders can check the bars are genuine, choose UPI or points for site influencers, and run every draft scheme on last year's tonnage before launch.
Why steel needs its own design
Three things make TMT different from most building materials. First, the price changes often, sometimes daily, so a scheme written as a percentage of value pays a different amount for the same tonnage in two weeks. Second, the brand decision on a house is often made by the contractor or the fabricator who cuts and bends the bars, not by the owner. Third, re-rolled and look-alike bars with similar markings compete on price, and the home builder has little way to tell them apart. A program that ignores any of these will be either unfair, invisible to the people who decide, or open to abuse.
The setup, step by step
Map the tiers
List distributors, the dealers and retailers they serve, and the contractors, fabricators, bar benders and engineers active in each district. Mark which dealers buy from you directly and which buy through a distributor, because their proof of purchase differs.
Write dealer schemes per tonne
Express slabs and rewards in tonnes, for example a reward per tonne above a monthly tonnage slab, and growth as tonnage over the same period last year. The payout then stays the same whatever the day's price.
Prove secondary sales
For dealers who buy from distributors, use the distributor's invoices fed through a distributor management system or an Excel upload, or a bill photo read by OCR. Decide this before the circular, so dealers know what counts.
Put a QR code on every bundle tag
Each bundle carries a tag with a unique code. A contractor, fabricator or bar bender scans it at site; the first scan binds the code and duplicates are blocked. The same code lets a home builder check that the bundle is genuine.
Decide who earns on a bundle
On a site, the contractor buys and the bar-bending crew handles the steel. Decide whether the reward goes to whoever scans first, to the contractor with a share to the crew, or to the fabricator. State it plainly so crews do not fight over tags.
Pick reward routes
Distributors and dealers usually take credit notes against their ledger. Contractors, fabricators and bar benders respond to instant UPI per scan, with points and tiers for larger goals.
Test on last year's tonnage
Run each draft scheme on six to twelve months of invoices. Check how many dealers would have crossed each slab, the cost per tonne, and how the result shifts between the monsoon and the peak season.
Publish in local languages
Send each dealer and site influencer their own scheme and current position on WhatsApp or the app, in Hindi, Telugu, Tamil, Kannada, Marathi, Bengali, Odia or English.
- 1DistributorPer-tonne slabs on primary invoices; credit note
- 2DealerTonnage slabs proved by distributor invoice or bill photo
- 3ContractorScans bundle tags at site; UPI or points
- 4Bar benderEarns on scans under the agreed split; tiers
- 5Home builderScans a tag to check the bars are genuine
Per-tonne versus value-based schemes
An illustrative comparison for a dealer who lifts the same 40 tonnes in two months, with the price moving between them.
| Month 1 | Month 2 | What the dealer sees | |
|---|---|---|---|
| Price per tonne (illustrative) | ₹56,000 | ₹52,000 | Price fell |
| Value-based scheme: 1% of value | ₹22,400 | ₹20,800 | Same effort, lower reward |
| Per-tonne scheme: ₹500 per tonne | ₹20,000 | ₹20,000 | Same effort, same reward |
Per-tonne schemes are easier for dealers to understand and easier to cost. Keep any price protection or rate difference you offer separate from the incentive scheme, so dealers do not confuse a price adjustment with a reward.
Schemes by tier
| Tier | Scheme kinds | Proof | Reward |
|---|---|---|---|
| Distributors | Per-tonne slab, growth over last year, collection, cash discount | Primary invoices from the ERP | Credit note |
| Dealers and retailers | Monthly tonnage slab, short-window scheme, new dealer | Distributor invoice, bill photo with OCR, or tag scan | Credit note, UPI or points |
| Contractors | Per-scan reward, project milestones, tiers | Bundle-tag scans | UPI, points, gifts |
| Fabricators and bar benders | Per-scan reward or share, monthly milestones | Bundle-tag scans | Instant UPI |
| Engineers | Technical meets, recognition | Not purchase-linked | Training and certificates |
As with any specifier, keep engineers on recognition and technical programs rather than per-tonne cash. The loyalty programs for steel and TMT brands post covers program formats, and contractor loyalty programs covers the contractor side.
How Unotag sets this up for TMT brands
Unotag calculates per-tonne distributor and dealer schemes daily on its scheme engine, reading invoices from SAP, Oracle, Microsoft Dynamics, Tally or Excel and secondary sales through its distributor management system. Bundle-tag codes are scanned on WhatsApp or the app with first-scan binding and duplicate blocking, pay out by UPI or points, and double as anti-counterfeit verification for home builders. See the TMT steel page for the full program.
Key takeaways
- Write TMT dealer schemes in tonnes, not as a percentage of a price that moves daily.
- Decide how secondary sales are proved before announcing dealer schemes.
- Put a unique code on each bundle tag to reward site influencers and verify genuine bars with one scan.
- State clearly who earns on a bundle: contractor, fabricator or bar-bending crew.
- Test every draft scheme on last year's tonnage across both monsoon and peak months.
Frequently asked questions
Why should TMT dealer schemes be per tonne?
Because steel prices move often. A per-tonne reward pays the same for the same tonnage whatever the day's price, which is fairer to dealers and easier for the brand to cost.
How do fabricators and bar benders earn in a TMT program?
They scan the unique QR code on each bundle tag at site. The first scan binds the code, duplicates are blocked, and the reward reaches them by UPI or as points under the split the brand has set.
How can a home builder check TMT bars are genuine?
By scanning the code on the bundle tag. A genuine code returns the brand's product details; a code that does not exist or was already scanned elsewhere is flagged.
How do you prove a dealer bought from a distributor?
Through the distributor's invoices, fed by a distributor management system or Excel upload, or a photo of the dealer's bill read by OCR.
Should TMT schemes include price protection?
If you offer it, keep it separate from incentive schemes so dealers can tell a price adjustment from a reward, and so scheme cost is not distorted by price moves.
Is TDS applicable on rewards to contractors and fabricators?
Benefits given in the course of business may fall under Section 194R above the annual threshold. Track value per person and confirm the treatment with your tax advisor.