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1.0 PURPOSE
Introduce and maintain discounting
as a means to encourage customers to build up business with us or to reward
customers for their loyalty that is largely measured in terms of business level
and consistency of business. The policy
does not apply on specific occasions where the General Manager has authorised
special discount treatment such as for stock or cash flow control reasons.
2.0 POLICY
(a) Discounting Levels A 3.0%
B 2.5%
C 2.0%
(b) Customer Qualification
§ The level of business in dollar term is one of the criterion for
classification of customers. As business level fluctuates from month to month,
the classification shall be based on the average of the preceding 3 months.
A $50,000
per month or above
B $30,000
per month or above
C $10,000 per month or above
C Loyal and trust-worthy customers for personal use
§ The payment history of the customer is a major criterion for
negating the incentive. That is, the
discount will be suspended during the period when the outstanding payment owed
by the customer to us has become overdue.
Discounting will be suspended whenever the circumstances appear to be
not favourable to our company.
§ The discount applies to system orders only, not parts orders.
(c) Bulk Order Qualification
§ Discount is applicable to bulk orders but the discount is not
additional to any discount granted under the customer-based criteria stated
above. The higher level will apply for
that particular bulk order.
A for
20 systems or more per order or 10 off for parts order
B for 10 systems
or more per order
C for 5 systems or
more per order or 5 off for parts order
§ The discount shall be applied to the minimum base system price only
after including the downgrades or deletions.
Upgrades and additions are not discountable.
§ If companies go into 60 days they are automatically put on Stop
Credit. In some cases they will be buying goods on COD till 60 days is
cleared. In this instance the discount
will still be applicable for bulk orders.
§ If companies go into 90 days than they lose the
bulk discount because 90 days indicates a bigger problem than just being late
§ Discounting on Bulk orders will still apply for
companies who have got into trouble and are paying off their account with MTNZ
but are still trading with us. This is because when they default on their
agreed payments they are charged 2% interest per month.
(d) Non Discountable Items
§ For any indent item without a price published by the company, price
for our customer is “our cost divided by 0.9”.
These items are not discountable.
§ All Agency products printed on yellow paper are not discountable.
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