When did distributors stop using points?
There is no single year when distributors universally stopped using points. In practice, point-based incentive programs faded gradually across industries from the late 20th century into the 2010s, with most manufacturers and distributors replacing points with cash rebates, tiered discounts, and digital reward portals. By the 2020s, points are rare in mainstream distribution, though a few niche or legacy agreements still reference them.
What “points” meant in distributor programs
In many B2B distribution networks, “points” served as a currency tied to purchase volumes or performance. Distributors earned points by meeting quotas, which could be redeemed for discounts, goods, or funding for marketing or training. The points system aimed to align channel partners with manufacturer goals and to simplify incentive accounting across widespread partnerships.
- Points as currency for future discounts on orders or for claiming rebates.
- Points earned by hitting sales targets, which could unlock higher program tiers or bonus rebates.
- Points redeemable for goods, services, marketing funds, or training subsidies.
- Points tracked through centralized portals or through statements from manufacturers or distributors.
Before illustrating how the practice evolved, here are the common uses historically seen with points in distributor programs:
Over time, the drawbacks of points—complex bookkeeping, delayed gratification, and opaque value—helped drive the shift toward simpler mechanisms such as direct rebates and transparent tiering.
The shift away: a rough timeline
The industry-wide transition unfolded in waves. The timeline below highlights common phases observed in many sectors, though exact dates varied by market and company.
- Late 20th century (1980s–1990s): Point-based incentives were common in consumer packaged goods, electronics, and industrial parts channels as a straightforward incentive currency.
- Early to mid-1990s: Manufacturers began offering cash-back rebates and tiered pricing, seeking easier accounting and faster feedback.
- 2000s: Digital rebate platforms and online portals emerged, enabling automated tracking and claims, which accelerated the move away from abstract points.
- 2010s: ROI-driven incentives and spend-based programs became standard; points receded from mainstream practice in many regions.
- 2020s: In most multinational distribution networks, points are no longer a common tool, with a few legacy contracts or niche markets retaining references to them.
In short, the shift was gradual rather than ceremonial, reflecting broader changes in how incentives are designed, measured, and administered.
Current landscape and exceptions
While the majority of distributors no longer rely on points, some exceptions persist in specific contexts.
- Legacy agreements in certain industrial supply channels with long-tail contracts that still reference point-based clauses.
- Regional markets where point-like credits are used within a closed network of suppliers and distributors.
- Niche sectors that employ custom loyalty schemes that resemble points but are integrated with modern ERP and rebate systems.
Even in these pockets, the broader trend is toward clearer pricing, faster rebates, and incentive programs that tie directly to measurable spend and performance.
What this means for buyers and suppliers
For buyers, the disappearance of points often means clearer pricing, faster rebates, and easier comparison across vendors. For suppliers, it means investing in data-driven incentive programs, digital portals, and transparent ROI measurement.
Key takeaways
- There is no single cutoff date; the move away from points happened gradually over decades.
- By the 2010s, most large distributors had shifted toward rebates, tier-based pricing, or digital rewards.
- Points persist only in a few legacy or niche arrangements.
Summary: The use of point-based incentives in distribution declined through the late 20th century into the 2010s, with most mainstream programs replaced by rebates, ROI-driven incentives, and digital reward systems. Today, points are largely obsolete in modern distribution, aside from a handful of legacy or specialized contexts.
What replaced points in a distributor?
Electronic ignition systems have largely replaced points-based systems in modern cars. Instead of mechanical points, this system relies on solid-state components.
What year did Briggs and Stratton stop using points?
1982
Magnetron Ignition – This solid-state ignition system introduced by Briggs & Stratton in 1982 eliminated the points-and-condenser system, the performance of which steadily degraded between required periodic maintenance service.
When did they stop using distributor caps?
By the 1980s and 1990s, distributors had been largely replaced by electronic ignition systems.
When did cars stop having points?
1970s
The first point-style ignition distributor was developed around 1910 to improve on the difficulties experienced with magneto-type ignition systems for automotive use. This point-style ignition was such a success that it was ultimately used in production cars until the mid-1970s.
