Market development funds and co-op: six programs compared, and how to build one distributors will claim

Distributors and dealers spend co-op money when claiming it is easy and when it pays for things they already want to do. Structure co-op or market development funds around proof of activity, such as a counter display, a branch training day, a mailing to the distributor’s own customers or an updated local listing, with a one-page claim and a credit within 30 days. Reimburse at 50% for most activity and at a higher share for the things that sell your product at the point of sale.

The program guides manufacturers publish make the case for that approach. Several of the six we read are built around newspaper, radio and billboard ads, ask for detailed proof, and give the dealer 30 to 60 days to file.

Co-op vs market development funds

The terms get used loosely. In the guides we read, co-op is an allowance that accrues from a distributor’s purchases, usually a percentage of the prior year’s sales, and reimburses part of the cost of approved marketing. Market development funds are discretionary. The manufacturer approves money for a specific plan, often case by case. Baker Distributing’s 2025 program for Bosch HVAC equipment is close to the second model. Baker “will approve marketing funds on a case-by-case basis for 50/50 co-op advertising.”

For a mid-size manufacturer, a sensible structure is co-op for every partner and a smaller MDF pool for the few who bring a plan.

Six published programs, compared

We read each guide in full on Oct. 26, 2026. Program years are as printed, and three of the six are past program years, dated below. Two of the six sell to channels outside our usual industries, an agricultural equipment maker and an engine remanufacturer, and are included for rules a channel-led industrial manufacturer can copy.

Manufacturer (program year)	Who it serves	Accrual	Share paid	Claim window	Notable eligible items
Degelman Industries (2026)	Agricultural equipment dealers	Up to $10,000 a year, set by sales	50% of net ad cost	60 days from ad date	Social media, websites, trade publications; events with approval
Ford Meter Box (rev. Oct. 2021)	Waterworks distributors	$100 per $100,000 of prior-year sales	50%	Not stated	Promotional items given to customers
Gamber-Johnson (2024; closed Dec. 15, 2024)	Resellers of vehicle mounting systems	$1,000 to $3,000, by sales tier	50%, split with other vendors	60 days; program closed Dec. 15, 2024	Trade show space, content creation
Vinylmax FlexFuel (page last modified Nov. 12, 2024; example year 2024)	Window distributors	0.75% of prior-year sales	35% to 100% by item	Use by Nov. 15; proof within 30 days; claims by Dec. 31	Samples and showroom displays at 100%
Jasper Engines & Transmissions (2024)	Repair shops and installers	3% of prior-year sales; preferred installers 4% once sales pass $30,000	Up to 50%	Claims by March 1 of next year	Websites, technician training
Rheem, through Baker Distributing (2025; claims closed Dec. 15, 2025)	HVAC dealers	1% of residential equipment purchases at $50,000 and up	50%	Claims by Dec. 15, 2025	Ads, truck decals, uniforms, billboards

Accruals in this set run from 0.1% of sales (Ford Meter Box) to 4% (Jasper’s preferred installers). Half the cost is the standard share, and five of the six pay 50% as their base rate.

Three of these are past program years. Gamber-Johnson’s 2024 program closed Dec. 15, 2024. Rheem’s 2025 program through Baker took claims until Dec. 15, 2025. Vinylmax’s FlexFuel page was last modified Nov. 12, 2024 and works its example for 2024. On Oct. 26, 2026 we looked for newer versions of all three and found none posted; Baker’s co-op programs page still links the 2025 Rheem document. The dollar terms may have changed since. The rules a manufacturer can copy, such as claim windows, proof and eligible items, are what we compare here.

What the guides reveal about unspent co-op

We found no published dataset we could open that measures how much co-op goes unclaimed in industrial or building products channels, so we make no claim about the size of the problem. The guides themselves show where the friction is.

Short windows come first. Degelman and Gamber-Johnson both require claims within 60 days of the ad or event. Vinylmax wants proof within 30 days of the invoice or event. A branch manager who runs a promotion in March and gets to the paperwork in June has lost the money.

Then there is use it or lose it. Jasper says unused funds “expire at the end of the calendar year and do not carry over.” Gamber-Johnson says the allowance “cannot be carried over to the next year.” Vinylmax forfeits balances after Dec. 31.

Proof can be heavy. Degelman’s radio claims need a notarized electronic tear sheet listing broadcast dates and times. Its print claims need the original tear sheet of the full page, and photocopies are not accepted. Gamber-Johnson wants tear sheets, booth photos and the trade show program.

And the eligible lists lean on old media. Several guides are built around newspaper, radio and billboard ads with logo rules and tear sheets. Industrial distributors sell through outside reps, inside teams and counters, web stores and email. In our view, a program that pays well for a newspaper ad and poorly for a distributor’s email to its own customers asks the distributor to market the way it does not sell.

Which activities are worth funding?

Pay for activity that sells your product to the distributor’s customers, at the place they buy.

Point-of-sale materials. Vinylmax pays 100% for window samples, showroom displays and color keys, against 35% for print and digital ads. The ratio shows where the manufacturer thinks windows get sold. A counter display or sample board at a distributor branch works every business day.

The distributor’s own customer list. Ford Meter Box splits the cost of promotional items that distributors give free to their customers. Vinylmax pays 50% for direct mail. Fund a distributor’s email or mailing about your line to its own accounts, using content you supply. The distributor already knows those buyers.

Content and local search. Gamber-Johnson lists content creation, including email, blogs, photography and video, as eligible with approval. Degelman covers internet and social media advertising. Extend this to the distributor’s product pages and local business listings, which are where buyers search.

Training at the branch. Jasper reimburses 50% of technician training, up to $500 a year per training company. In industrial distribution the equivalent is a product training day for counter and inside sales staff, or a customer lunch-and-learn at the branch.

Events with your product on the table. Gamber-Johnson covers trade show booth space only. Degelman requires approval for trade shows and does not pay for travel, accommodations, mileage or logistics. Those limits are sensible because they keep co-op money on shows the manufacturer has vetted and away from travel costs.

Window samples, showroom displays and color keys100%

Promotional items75%

Direct mail50%

Radio and television50%

Print advertising35%

Digital advertising35%

What one window maker pays for, by activity

Item	Value (%)
Window samples, showroom displays and color keys	100%
Promotional items	75%
Direct mail	50%
Radio and television	50%
Print advertising	35%
Digital advertising	35%

Share of cost Vinylmax reimburses for selected activities. Samples and displays get the full amount, as do dealer banners, Vinylmax-designed literature and logo apparel (not shown); print and digital ads get about a third, and direct mail and broadcast half. Source: Vinylmax, FlexFuel Co-op Marketing Program Guidelines (page last modified Nov. 12, 2024, example year 2024), read Oct. 26, 2026.

How to make claiming easy

1. One page, online. Degelman and the Baker programs take claims through a web form, and yours should too.
2. Accept a photo and an invoice. For a display, a dated photo and the invoice are enough. For a mailing, the list count, a copy and the postage receipt.
3. Give 90 days and a year-end grace period. Jasper’s March 1 deadline for prior-year claims is a good model.
4. Pre-approve by category. Degelman treats placements in daily, weekly and monthly publications and on local radio as pre-approved, and asks for approval before billboards, flyers, open houses, sponsorships and direct mail. Rheem through Baker requires pre-approval for every activity. Publish a list of activities that need no approval at all.
5. Pay fast. Gamber-Johnson pays by check within 30 days of a verified claim, and Vinylmax credits accounts within 30 days. A credit on the next invoice is simplest for both sides.
6. Send a quarterly balance. Tell each distributor what they have earned, what they have used and what expires when, so no partner loses funds by forgetting.

1. 1

   Run an activity on the pre-approved list

   No approval needed for listed categories

2. 2

   Keep a dated photo and the invoice

   For a mailing: the list count, a copy and the postage receipt

3. 3

   File a one-page online claim within 90 days

   With a year-end grace period for prior-year claims

4. 4

   Credit on the next invoice within 30 days

   Simplest for both sides

5. 5

   Send a quarterly balance

   What each distributor has earned, used and will lose, and when

Our recommended program. Short claim windows, heavy proof and use-it-or-lose-it rules are where co-op money goes unspent in the guides we read. Source: Our position, from six published co-op guides read Oct. 26, 2026.

In your industry

Building products. Dealers and lumberyards want displays, samples and contractor events. Vinylmax’s tiered shares, with samples and displays at 100%, are the pattern to copy. Rheem’s program shows a distributor administering the manufacturer’s co-op for dealers, which works when the distributor has the dealer relationships.

Industrial distribution. Fund the counter, the inside sales team’s product knowledge and the distributor’s own mailing list. Ford Meter Box’s per-branch limits ($25 minimum, $1,000 maximum, with branch sales combinable for larger projects) suit multi-branch distributors.

Automation and industrial tech. Resellers and integrators sell through demonstrations and content, and what makes an integrator recommend your product goes well beyond co-op. Gamber-Johnson’s approval of content creation and its rule for splitting costs among non-competing vendors fit this channel, where a reseller’s trade show booth carries several brands.

What to do this quarter

1. Pull last year’s co-op accruals and claims by distributor. Find the partners who earned funds and claimed none.
2. Rewrite the eligible list around point-of-sale materials, customer mailings, local listings, training and events.
3. Cut the claim form to one page and accept photo-plus-invoice proof.
4. Set the claim window at 90 days with a year-end grace period.
5. Send every distributor a balance statement this quarter, with the expiry date in the subject line.
6. Hold back a small MDF pool for two or three partners who bring you a written plan.