Product Discount Policy
This policy is for approved Wholesale Customers only
This policy is a discretionary policy introduced by dL Confectionery for the benefit of our wholesale customers. It is designed to offer support to all outlets serviced by our company by granting an allowance for all Darrell Lea products -
- By offsetting the costs associated with Darrell Lea seasonal specific products that are not sold, and;
- To offset the costs of ordinary Darrell Lea lines where products have reached their Best Before (BB) date.
We remain committed to provide a service to all our customers which include this discretionary policy. This sees privileges extended to outlets serviced by us being offset by obligations and responsibilities by all outlets. The following policy has been extensively researched and costed and whilst there may be anomalies from store to store, overall it reflects a similar value commitment from dL Confectionery as the previous policy .
There have been a number of changes that we have had to address recently and include –
- Changes to the trading terms imposed upon us from the wholesaler.
- Changes to our ability to dispose of returned goods, both ordinary and seasonal lines.
- An increasing incidence of outlets not meeting their payment obligations to us.
- Changes in the pricing policy of some outlets where above RRP pricing is contributing to the decline in sales and consequently more products are being placed in the category where they are approaching their BB expiry date or have already expired.
- Changes generally in the retail and commercial sectors restricting credit to customers.
- Obligations & Responsibilities
dL Confectionery will –
- Deduct an Ullage allowance of 0.5% on all Darrell Lea branded products with such percentage being based on the nett value of the invoice after the wholesale discount is applied.
- Father’s Day and Mother’s Day bags are deemed to contain ordinary lines for which the 0.5% Ullage allowance will be applied.
- Deduct an Ullage allowance of 1.5% on all Darrell Lea branded seasonal lines where there is specific packaging to identify the season. Such percentage is also based on the nett value on the invoice after the wholesale discount is applied.
- The 1.5% Ullage allowance will also apply to specific promotional lines such as the impending 90 th Birthday Commemorative tin where the promotion is a one-off type.
- Continue to provide credits where there are special circumstances such as non performing lines that could be replaced in favour of another better performer.
- Manufacturers’ faults and the like will continue to be honoured.
*Ullage Definition – principally used in the context of the wine and liquid fuel industries but also has a context in warehousing where a special and additional allowance is applied by the supplier to recognize the financial value of an item or items and to offset matters like –
- Pilfering and wastage
- Damaged goods where not the responsibility of the supplier e.g. heat and sunlight exposure
- In our case – the offset of costs associated with Best Before date expiry and the non-sale of seasonal specific and ordinary goods.
Customers will –
- Be able to apply their own pricing policy with respect to any Darrell Lea product.
- Use the Ullage percentages as they deem appropriate.
- Choose any method by which they deal with the sale or disposal of goods falling within the terms of this policy.
dL Confectionery reserves the right to withdraw this policy at any time and from any customer where there are anomalies or discrepancies in the business relationship including but not limited to the following –
- It is expected that all outlets will pay all accounts within Trading terms. Each outlet is responsible for their account being within trading terms and remains within those terms at all times.
- Trading terms will see all accounts placed on a 14 day basis. Statements will be issued on the 1 st and 15 th of each month
- Payments are expected as per statement however any account that carries a balance as at 1 st of any month (a balance in the 30+ days category – i.e. outstanding two periods) will be deemed in arrears.
- Accounts in arrears may incur the following sanctions –
- The account will be placed on hold without reference to the outlet concerned.
- The total withdrawal of this policy and the forfeiture of any possibility of this policy being reinstated.
- A surcharge will be imposed at our discretion equal to $20.00 plus GST. For each monthly statement where amounts remain in arrears.
- Interest at a rate of one (1) percent per month on balances that appear on the 1 st of the month statement.
- Outlets paying by cheque through the postal system must ensure that cheques arrive on time. In this regard, EFT payments are encouraged. Cheques and EFT payments will be processed on the day of receipt.
- Alternatively, credit/debit card facilities are available either in store at the time of delivery or subsequently via a call to us for an ‘over the phone’ transaction. Note – no Credit card or Debit card charges will be applied to any such transaction.
This policy no longer places any requirement on customers to adhere to the Darrell Lea Recommended Retail Pricing structure, a policy that gave customers’ access to the previous policy.
To take full advantage of this policy, outlets are encouraged to –
- Place orders not less frequently than monthly. This will assist outlets to order responsibly and to order in quantities that reflect individual sell through rates.
- Ensure that all stock is maintained fresh and presented in an attractive condition.
- Place all orders through our online store not later than the close of business on Wednesday prior to the scheduled delivery day.
- Use credit card payments thereby accessing credit facilities I can no longer provide.
Drafted 14th February 2017
Amended 24 th May 2017 - Payment of Accounts