Thank you for your effort and support during the calendar year 2017, due to which your company achieved robust sales in most regions. you would also be happy to learn that your company has already introduced Diesel Exhaust Fluid [DEF] that offers a very good sales potential. The company shall also be introducing engine oils and lubricants in the coming months. We earnestly look forward to your continued cooperation for our mutual benefit.
In order to streamline the Sales and Distribution Network further and instill a sense of healthy competition amongst our distributors, a new sales policy will be introduced from 01 Jan 2018. This policy shall run from 01 Jan 2018 to 31th December 2018.
The present system of door delivery will continue for this calendar year but from Year 2019, we shall be offering our products ex. Our depots only.
The salient features of this policy are given below:
- The new price list will carry a Dealers Landed Price [DLP] as the base billing price.
- You will sell the products to the Dealers/Retailers at this price only after adding the applicable GST. At present, all products of the company attract a 18% GST.
- You will get an invoice discount as per the following slabs:
- Invoice Value: > Rs.3,00,000.00 10.00%
- Invoice Value: > Rs.2,00,000.00 & below Rs.3,00,000.00 9.50%
- Invoice Value: > Rs.1,00,000.00 & below Rs.2,00,000.00 9.00%
- Invoice Value: > Rs. 50,000.00 & below Rs.1,00,000.00 8.50%
- Invoice Value: < Rs. 50,000.00 8.00%
- The present system of advance payment shall continue and a cash discount of 2% shall be given on the invoice.
- Targets for the quarter, product wise, shall be agreed upon between the company and you within the first 15 days of the quarter. The targets must be confirmed by you through e-mail. If you do not confirm your target by mail you will not be entitled to any quarterly benefits.
A concept of a Dynamic Quarterly Discount [DQD] is being introduced to incentivize our distributors. Under the DQD system, the value of purchase during the quarter, purchase regularity and achievement of targets shall be taken into consideration. The DQD shall be calculated as under:
Purchase Regularity and Target Achievement
- If you have purchased in at least 2 out of the 3 months of the quarter and achieved a minimum of 95% of your agreed target, a discount of 2.00% + GST will be paid for entire quarter's purchase.
- If you purchase more than 100% of the quarterly target, the quarterly discount shall also increase by the same percentage. For example, if 120% of the target is achieved, you will get a 20% higher quarterly discount and you will therefore get a 2.40% discount instead of 2.00%
- Both the above condition of purchase and targets must be met to get the quarterly discounts.
All accounts pertaining to a quarter shall be finalised and incentives shall be paid by the 15th of the month succeeding the quarter ending. Incentives shall be paid only through bank transfers through NEFT/RTGS to your account. These incentives shall not be settled by way of any credit notes.
On the lines of the DQD a Dynamic Annual Discount [DAD] scheme is being introduced that shall be calculated as under:
Purchase Regularity and Target Achievement
Secondary Sales Data
- If you have purchased in at least 9 out of the 12 months of the year and achieved a minimum of 95% of the sum of your agreed four quarterly targets, a discount of 2.00% + GST will be paid for entire annual purchase.
- If you do more than 100% of your annual target, the annual discount shall also increase by the same percentage. For example, if 120% of the target is achieved, you will get a 20% higher annual discount and you will therefore get 2.40% discount instead of 2.00%
- Both the above conditions of purchase and targets must be met to get the annual discounts.
- All accounts pertaining to the year shall be finalised and incentives shall be paid by the last day of the month succeeding the year ending. Incentives shall be paid only through bank transfers through NEFT/RTGS to your account. These incentives shall not be settled by way of any credit notes.
The company plans to introduce Dealer/Retailer incentive schemes in line with market requirements. These schemes will be administered by the company through you in your area for a successful implementation of this plan, the company will need to have a real time data of the dealer’s/retailers' purchase. To enable this to happen without putting you to any inconvenience, a special software will be installed at your end at the company's expense. We solicit your fullest cooperation in this regard. The company of course guarantees that all such data will be treated as highly confidential and will not be shared with anyone, except with the analytics department within the company.
The company has tried to factor-in every possible requirement of our distributors and we expect you to please follow the above policy in letter & spirit. Kindly appreciate that in this very competitive market environment, we shall be unable to have anyone as our Distributor if the above policy, especially regarding maintaining the dealer/retailer selling price and providing a true and complete secondary data is not fully complied with.
In case you have any queries or suggestions to further improve this sales policy, you are requested to kindly contact the undersigned positively before the 20th of December 2018.
General Manager (Sales & Marketing)