2012 DISTRIBUTOR SUPPORT PROGRAM

Transcription

1 2012 DISTRIBUTOR SUPPORT PROGRAM Terms and Requirements Distributor Sign-up Authorized Preferred Online Seller Program Co-op Program Rebate Program Inventory Rotation Program Customer Service Contact Information

2 Distributor Terms and Requirements DISTRIBUTOR TERMS Standard Discount Freight Terms Destination Showroom % $7,500 List & over freight prepaid 50 10% Select Showroom $7,500 List & over freight prepaid Co-op Display Discount Growth Rebate Inventory Rotation Program (per program rules) Website Listing Circle of Excellence Program 2% (per program rules).25 multiplier (EXCEPT Dynamic Display which are at net pricing) Eligible 11 Net Purchases < 10 = 1% Stock Rotation 11 Net Purchases > 10 = 2% Stock Rotation Up to 3% for a $2 for $1 order Per showroom registration Eligible: Showroom Consultants, Counter Sales, Outside Sales and Inside Sales 2% (per program rules).25 multiplier (EXCEPT Dynamic Display which are at net pricing) Eligible 11 Net Purchases < 10 = 1% Stock Rotation 11 Net Purchases > 10 = 2% Stock Rotation Up to 3% for a $2 for $1 order Per showroom registration Eligible: Showroom Consultants, Counter Sales, Outside Sales and Inside Sales DISTRIBUTOR REQUIREMENTS Minimum Annual Net Purchases (based on 2011 actual) Display Requirement Sales Training Technical Training Payment Terms Destination Showroom $100, ft. Dynamic Display * (or equivalent product planogram) Required Required 3% 15 days net 30 days < $100,000 Minimum distributor purchase requirement: $25,000 net annually.) 12 ft. Dynamic Display * (or equivalent product planogram) Required Required Select Showroom 3% 15 days net 30 days * Mix of kitchen, bath, and shower products Distributor requirements include, but are not limited to, the following: 1) business is primarily traditional brick and mortar wholesale; 2) warehousing with sufficient inventory to service trade demand; 3) physical showroom open to the public and/or the trade; 4) call center for customer/warranty/installation service. 2

3 Distributor Program Enrollment Review all terms and conditions as outlined in this document, the 2012 GROHE Distributor Support Program. New accounts or accounts requesting a status upgrade, complete the GROHE electronic sign-up form (see example below) to establish status as a Destination or Select account. GROHE Representative has the electronic version of this form. The form is also available online on GROHE s Information Resource. This form can ONLY be submitted electronically. All electronic Showroom Program Sign-Up Forms must be returned to GROHE Headquarters. Forms should be returned to GROHE Customer Service for verification: us-customerservice@grohe.com All showrooms have until June 30, 2012, to comply with the specific display requirements of their respective status level. Compliance is determined by installed displays or appropriate display orders placed for immediate shipment. At its discretion, GROHE will require this form to be updated for all customers annually (target Q4). 3

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5 Preferred Online Seller Program GROHE AUTHORIZED PREFERRED ONLINE SELLER PROGRAM EFFECTIVE FEBRUARY 1, 2012 GROHE America understands the importance of the expansion of its brand online. In order to protect GROHE s branding and reputation, we are implementing this Preferred Authorized Online Seller Program. GROHE America s Preferred Authorized Online Seller Program is a program intended for those internet retailers that support the GROHE brand as described herein. This program covers all Grohe product sellers including Dealers and Distributors. Dealers are defined as sellers which (a) purchase GROHE brand products from GROHE authorized stocking distributors; and (b) resell those products to end users through an online website. Distributors are defined as businesses which buy products directly from Grohe and are designated as authorized stocking distributors who can sell online or offline. U.S. Authorized Preferred Online Seller Criteria 1. REGISTRATION A completed registration form must be filed with GROHE for preferred authorized seller consideration. Completion of the document does not guarantee approval for online reselling authorization. 2. INTELLECTUAL PROPERTY RIGHTS a. When advertising prices of GROHE products, the distributor or dealer must use and display the "GROHE Authorized Online Store" logo in all online media, and must state that the "GROHE Authorized Online Store" logo is a trademark of GROHE America, Inc. and that GROHE product images are owned by GROHE America, Inc. and are reproduced with permission. b. All information related to GROHE America which is included on the online distributor s or dealer s website, including images and logos, must be current and accurate. c. GROHE America reserves the right to inspect the manner in which the distributor or dealer is using the GROHE logo and product images to ensure that such use is of proper quality. d. GROHE America reserves the right to take all necessary steps to enforce its trademark, copy right, and other intellectual property rights against any distributor or dealer which sells GROHE products. 3. BRAND POSITIONING The GROHE Authorized Online Store logo must appear on the product page(s), with GROHE images, and on the GROHE store. 5

6 Preferred Online Seller Program GROHE AUTHORIZED PREFERRED ONLINE SELLER PROGRAM 4. WARRANTY The GROHE Limited lifetime warranty is only valid on products that have been purchased from a Preferred Authorized Online Seller. 5. OTHER REQUIREMENTS The distributor or dealer must comply with all other criteria applicable generally to distributors or dealers of GROHE brand products, as stated in the current year GROHE Distributor or dealer Support Program and other GROHE documents and as revised from time to time by GROHE. U.S. Authorized Preferred Online Seller GROHE America Authorized Online Preferred Sellers are those which meet and comply with each of the following criteria: 1. PURCHASES Preferred Online Seller must have annual net purchases of GROHE brand products of at least $250, SERVICE a. Preferred Online Seller must maintain online ( /chat) customer service, and toll-free phone- in customer service available a minimum of 40 hours/week. Both online and phone-in service data must be clearly visible on the website and easily attainable by customers. b. Preferred Online Seller personnel must participate in customer service training as necessary and/or required by GROHE. c. Preferred Online Seller must handle consumer product returns directly. 3. GROHE STORE GROHE Preferred Online Sellers have the opportunity for a link to their website directly from the Where to Buy section of These links will be exclusively available to those authorized Preferred Online Sellers who meet the following criteria: A) The link from the Grohe website will only be directed to a URL directly associated with a GROHE Authorized Preferred Online Seller. B) The GROHE Authorized Preferred Online Seller must create a GROHE store, that is: Via link from GROHE: the dedicated GROHE store can only display GROHE products. Via link from GROHE: only GROHE products are available for purchase. Via link from GROHE: the visitor is allowed only to navigate within the GROHE store or back to GROHE s website. 6

7 Preferred Online Seller Program GROHE AUTHORIZED PREFERRED ONLINE SELLER PROGRAM 3. GROHE STORE (continued) C) The GROHE store must provide qualified customer service support. The customer service function must also include a published, consumer friendly return policy. D) GROHE Authorized Preferred Online Seller with links to its own GROHE store must provide monthly sell-out data to GROHE (minimally, GROHE sales by zip code for the entire website, not limited to the GROHE store). E) Exceptions, at GROHE s discretion, to the GROHE Store requirement as outlined above will be considered for those retail websites with GROHE sales exceeding $5 million Preferred Online Seller Benefits Website listing on GroheAmerica.com Hyperlink to Seller s Grohe store from GroheAmerica.com Use of Authorized Grohe Store logo GROHE Warranty supported Active brand and account management Unilateral Policy a. The adoption, implementation, and enforcement of the GROHE Preferred Authorized Online Seller program is solely GROHE America s unilateral decision and responsibility. No employee or representative is authorized to discuss, modify or seek or obtain agreement with this program. b. GROHE America will determine unilaterally which dealers are authorized under this program. c. This program is subject to revision at any time by GROHE America. GROHE has the sole discretion to accept or deny the authorization of any online seller at any time. 7

8 Co-op Program Purpose: To provide funds for all GROHE Stocking Distributors to further promote and advertise GROHE products and enhance GROHE brand name awareness in association with individual distributor firms. Co-op Program Allowance: On a 50/50 basis GROHE will contribute up to 2% of the dollar value of a distributor s total 2011 GROHE net shipments for co-op advertising on all approved advertising and promotional expenditures. The amount of co-op funds contributed by GROHE will match (and will not exceed) the amount contributed by the distributor for each claim submitted. December co-op expenses will be credited against the following year s co-op fund. No transfer of remaining funds into following year. No claims in 2012 for activities in Display Program Allowance: For Display only, GROHE will allow co-op funds to be used to fund 100% of upgrades to showroom display. Co-op fund proposals must follow the guidelines listed below and those defined in the following pages. Use of Funds: Co-op funds can be used for media advertising, showroom displays, and promotional merchandise. However, no more than 20% of the total co-op fund can be used for promotional merchandise and wearable logo items. All co-op claims will be paid by Credit Memo. Accounts must be in good credit standing to participate. Program Dates: Program starts -- January 1, % of the co-op fund must be planned in writing (with the GROHE representative) and submitted to GROHE headquarters by June 30, 2012 (proposals need not be completely entered by this date). Program proposal deadline -- October 15, 2012 Program ends/wrap-up deadline -- December 1, 2012 Filing Co-op Claims The Proposal Procedure: All co-op program proposals must be submitted by a GROHE Sales Representative using GROHE s online system. All materials including ads and other graphic layouts must be submitted electronically. All approvals are also generated through the online tool. Submit to GROHE Headquarters by October 15, Requires Regional Manager and Headquarters approval. No verbal approvals will be accepted. See co-op FAQs for specific details on all co-op proposals, especially regarding display co-op. Co-op program is available only to GROHE Stocking Distributors. The Wrap-Up Procedure: All co-op program wrap-ups must be submitted by a GROHE Sales Representative using GROHE s online system. All proof-of-performance including invoices must be submitted electronically. All approvals are also generated through the online tool. Credits are generated based on input from the online co-op system. Submit to GROHE Headquarters by December 1, Wrap-Up must match Program Proposal previously approved. Proposals and Wrap-Ups cannot be submitted at the same time. 8

9 Co-op Program The Wrap-Up Procedure (continued): Headquarters approval is required for credit. Must include electronic versions of all back up material including receipts, invoices (which had been issued to the distributor), and/or samples or printed proof of performance. Co-op claims will be paid by Credit Memo only. Debits will not be allowed. See co-op FAQs for specific details, especially regarding display co-op. Media Criteria Media advertising is defined in the GROHE program as digital/magazine/newspaper ads, printed materials, radio/television commercials, billboards/signage, and direct mail/crm programs. To assure reimbursement, all print ads should be approved by GROHE Headquarters prior to production or placement, and should be included with your proposal form. Claims made on printed materials without prior written approval are not guaranteed to be approved for credit. Corporate Logo and Corporate Color (Pantone 661): The GROHE logo is a one-color logo. When used in color the letters G-R-O-H-E and three waves and ENJOY WATER must match PMS 661. No variations will be allowed without prior written consent from GROHE Headquarters. When the logo is printed in black & white it should be printed entirely in black on a light (or white) background, or reversed out of a dark background. Digital GROHE logos are available online in the GROHE Image Library, available through the Information Resource link on or from your local GROHE sales representative. The word GROHE may never be separated from, repositioned, or resized in relationship to the waves when used as the logo. The ENJOY WATER portion of the logo may only be eliminated when logo is too small for ENJOY WATER to be legibly printed. All advertising and collateral materials must use the GROHE logo as defined above without exception. Manufacturer Limitations: GROHE will fund co-op ads provided that no other manufacturer(s) name, logo or competing products are shown within the ad space (unless otherwise by approved GROHE headquarters). Approved Radio and Television Advertising: All scripts and story boards must be submitted for prior written approval. These should be included along with the proposal specifically defining demographics of the subject market area and electronic medium being used. Billboards/Signage: For authorization of co-op funds, please submit a design and specific details regarding proposed signage. Final authorization, if allowed, is based on your submitted proposal which defines your overall sign concept. GROHE will not rent advertisement space on distributors signs, trucks or buildings. 9

10 Co-op Program Media Criteria (continued) Media Limitations: GROHE will not allow co-op advertising credit for any advertisement (regardless of media type) that mentions specific pricing or discounts. Internet Marketing/Web Sites GROHE co-op funds can be used for online marketing/advertising programs with prior written approval. GROHE does not cover distributor web site hosting, development, design or maintenance. Direct Marketing/E-newsletters GROHE co-op funds can be used for direct marketing programs such as direct mail, printed newsletters or e-newsletters. However, GROHE co-op does not cover the cost of list acquisition or mailing costs (handling fees, postage, e-newsletter mailing sites e.g. ConstantContact.com, etc.). Yellow Pages GROHE does not have a Yellow Pages program. Note: An electronic copy of the advertisement (tear sheet, script, video, etc.) must be included with the Program Wrap-Up. Co-op FAQ s Q: Who can submit GROHE co-op claims? A: All GROHE co-op claims are submitted to GROHE by your sales representative. Your representative will file co-op proposals and wrap-ups, as well as acquire the necessary approvals, through GROHE s online co-op system. Q: Do reps necessarily have to file my claims through the online co-op system? A: Yes! We can only accept co-op requests that are submitted through the online system. Note: Please be aware that all of your co-op display orders must be filed through the online system as well. Display orders that are submitted directly to GROHE will not be processed for coop until they have been entered (with appropriate PO numbers) into the co-op online system. Q: When do I file a co-op proposal? A: The rule is to file a proposal before a program starts. This gives GROHE the opportunity to ask questions if something is unclear, to make suggestions or even to make corrections, especially if there is a funding issue. It is best to solve all questions and disputes BEFORE the program runs and the money is spent. The last thing we want to do is decline a co-op wrap-up for something that could have been avoided if questioned in the proposal stage. Please be aware that each proposal requires Regional Manager and Headquarters approval. No verbal approvals will be accepted. 10

11 Co-op Program Co-op FAQ s (continued) Q: What if a distributor submits invoices to file after the program has run? A: We expect that reps will know what programs you might be running to promote the GROHE brand and product sales, and therefore, a rep should know about a program before it runs and have already submitted a proposal. However, we do understand that you may, at times, run a program/ad without informing your rep. In this case please provide as much information as possible when requesting that your rep file a proposal. Best practice is to provide exactly the information you would provide for the wrap-up. No wrap-up will be approved without also submitting a proposal and there is no guarantee that a program that has already been executed will be approved for a co-op credit. If a program that has already been run does not meet acceptable co-op requirements, we are not bound to extend a co-op credit. Reps can best avoid this situation by stressing to distributors that this is not an acceptable practice. Q: What programs require pre-approval? A: For radio, television, and internet advertising please submit all scripts, story boards, layouts for prior approval; this can be achieved through the online system simply by attaching the appropriate materials with the proposal. Please also be aware that radio and television advertising will not be credited if there was no pre-approval through GROHE Marketing. Q: Do I have to have printed ads pre-approved? A: You don t necessarily need to have pre-approval on print ads, but we highly recommend it. Claims made on printed materials without prior written approval are not guaranteed to be approved for credit at the wrap-up stage, even if the proposal was approved. All print ads must use the current GROHE logo with approximately equal weight as compared to the distributor s logo. Multiple manufacturer ads are not allowed without a pre-approval from GROHE Marketing. Q: What do I need to know about Media Criteria? A: Media advertising is defined in the GROHE program as digital/magazine/newspaper ads, printed materials, radio/television commercials, billboards/signage, and direct mail/crm programs. Q: What information is required for promotional events and/or programs? A: In the past we often received nothing more than a catering bill for a customer event. We now require more qualitative information for promotional activities. Here is an example list of what we will be asking for: 1. List of participants (where possible, with name of the company, address data and contact information, e.g. address). At the very least, we want to know the number of attendees. 2. List of GROHE products that were presented, and what, if any, GROHE training presentations were used. 3. List of products that were sold through the promotion, and/or details of the promotion. 4. Number of customer appointments that may have been generated. 5. Were there any specific goals set for the promotion and were those goals achieved? 6. Any details necessary for understanding the value of the promotional expense. It is recommended that a set of program metrics are outlined in the proposal and assessed in the wrap-up. Note: Please be aware that promotion descriptions such as the event was successful or built GROHE awareness will not be accepted. The proposal and/or wrap-up will be declined with a request for more detail. 11

12 Co-op Program Co-op FAQ s (continued) Q: Can a debit memo be submitted with co-op materials to expedite co-op credit? A: GROHE will not accept or honor any debit memo against co-op funds. Co-op proposals or wrap-ups submitted with debit memos will be immediately declined. Co-op funds are available to extend the GROHE brand (with advertising, displays and/or promotions) through a distributor within a local market. Any expenditure for co-op credit must meet GROHE standards, and must be submitted through the GROHE online co-op system. Q: Can multiple advertising activities (in different publications and/or mailings) be submitted in one proposal? A: No. We realize that multiple activities run by the same customer put on one co-op proposal may save time, however, it does not allow us to question, for example, an ad in one publication that may be different from an ad in another publication. Where multiple activities are submitted as one proposal/wrap-up, we may need to issue partial credits for those activities that meet requirements and decline credit on those that do not. Q: What do I need to know if I would like to enter a display order for co-op? (This answer is directed at the GROHE Rep entering the display program through GROHE s online co-op tool.) A: In Program Type on the online tool, please always select Display. Exception: Choose Other as the Program Type for display orders using a remaining balance of a co-op fund which is insufficient to cover the entire cost of the display order. Regarding Purchase Order Numbers, please make sure that there are no spaces, dashes, periods, etc. If the order includes both mounted and non-mounted products, the purchase order number is required to be entered in the 1st PO field and then again in the 2nd PO field with the initials NM (non-mounted) added after the same PO number. If the display order is for only one (mounted) or the other (non-mounted), only the 1st PO field is necessary and the NM is not required on PO number. Note: Once a display proposal has been submitted there is no way to change the PO number afterwards. Therefore, only submit claims with a valid PO number and display order. Claims without a PO number or with an invalid PO number will be declined immediately. Please submit one proposal per PO number - otherwise the order cannot be processed by the GROHE SAP system. Q: Anything I need to know about the wrap-up? A: Yes. Claims can only get wrapped-up when they include all back up material such as receipts, invoices (which had been issued to the distributor), and/or samples or printed proof of performance. No credits will be issued without appropriate proof of performance. Q: Have program deadline dates changed for 2012? A: No. Program proposal deadline is October 15, We highly recommend to file proposals as they occur and not to wait for the proposal deadline. Program ends/wrap-up deadline is December 1, We highly recommend to wrap-up your claims as they occur and not to wait for the wrap-up deadline. Note: These are HARD dates. Plan ahead, no exceptions will be allowed! Co-op plans for 2012 should be outlined, submitted to the GROHE Regional Sales Manager and completed with customer agreement by June 30, 2012, even if the proposal is not filed until October 15,

13 Rebate Program Everyone can be a winner with GROHE s 2012 Rebate Program! The program is easy. When you exceed your 2011 net purchase total in 2012 by 5%, you will qualify for the rebate at the corresponding net purchase level. If your net purchase total in 2012 advances you to the next level, you earn the higher rebate. Note: Net purchase totals are 2012 invoiced shipments. Additionally, if your net purchase total exceeds 2011 by 10% or more, you qualify for additional Bonus Rebates! Please refer to the following schedule of net purchase levels, rebate percentages, and bonus rebates to set your GROHE targets for Program specifics include: Rebates will be issued in the form of a Credit Memo during the first quarter of 2013 The 2012 Rebate Program is open to all Full Stocking Accounts with minimum 2012 net shipments exceeding $50,000 Accounts must be in good credit standing with GROHE to participate in this program To assure your 2012 net purchases are invoiced in December, get your orders in early Accounts opened in 2011 are subject to pro-rated net purchase totals as determined by GROHE Headquarters Accounts opened in 2012 are only eligible for the base Rebate Note: The GROHE Rebate may be superseded by other incentive programs which may eliminate distributor eligibility for the rebate program outlined here. Your local GROHE sales representative will be contacting you to discuss the 2012 Rebate Program. 13

14 Rebate Program Rebate Award Schedule 2012 Total GROHE Net Shipments Base Rebate Level* $ $49, , , /2 % 100, , /4 % 250, , % 500, , /4 % 750, , /2 % 1,000, and Up 2 % *Qualify when 2012 total net purchases exceed 2011 total net purchases by 5%. Bonus Rebate Award Schedule Select Destination Net Incremental % Increase Showroom Showroom 2012 Over 2011 Purchases Rebate** Bonus Rebate*** 5 % Base Rebate Only 1 /2 % 10 % 1 /4 % 3 /4 % 15 % 1 /2 % 1 % 20 % 3 /4 % 2 % 25 % 1 % 3 % ** Added to Base Rebate when incremental increases are achieved with Select Showroom status. *** Added to Base Rebate when incremental increases are achieved with Destination Showroom status. Notes: Open to all Full Stocking accounts with minimum 2012 net shipments exceeding $50,000. Accounts must reach $50,000 to receive rebate. Base Rebate level is based on your final 2012 net shipments. Multi-Branch operations are grouped as one sales unit. Rebates will be credited to the distributor s headquarter office. Showroom Bonus Rebates are added to the Base Rebate and calculated back to dollar one. Rebates will be issued in the form of a Credit Memo during the first quarter of

15 Inventory Rotation Program Please read carefully: All Grohe Full Stocking Distributors may return up to 1% of the dollar volume of last year s net purchases from GROHE. For direct purchases only, we will allow a 2% return authorization, based on the dollar volume of last year s net purchases, for those customers who increased net sales year over year. GROHE will allow a 3% stock rotation based on a $2 for $1 offsetting order. All returns under this program must meet following guidelines: All return requests must be approved by the appropriate GROHE Regional Manager. All returns must be completed under this program by August 1, Stock Rotation cannot be accumulated or carried over from one year to the next. All product considered for return must be pictured in the current GROHE price book and must be in A-1 first class resalable condition. Products that are designated as discontinued by a star (*) in the 2012 price book will not be considered for rotation. All return requests must be accompanied by a new replacement order of equal or greater value. All authorized returns will be priced at last year s prices in the Effective January 1, 2011 price book. The distributor is responsible for all shipping costs - there will be no factory allowance for freight - and must assure that the product is returned in A-1 resalable condition. For this reason, master shipping cartons should be used to return product. No credit will be given for product received back damaged. Also, there will be a $5.00 per box re-boxing charge if necessary. Distributor s account must be current and in good standing in order to participate in the program. Debits will not be allowed. 15

16 Customer Service Contact Information Customer/Warranty Service: Repair or Installation: Internet: Inventory or Order Status: Online Specs/Parts Info: (Click on Information Resource ) Phone: Toll-Free Customer Service: GROHE Fax: Toll-Free Fax Ordering: TERMS AND CONDITIONS OF SALE PRICES: FREIGHT: Prices and terms are subject to change without notice. Shipper reserves the right to ship merchandise by the method of our choosing. Shipments are FOB Bloomingdale, Illinois warehouse. No freight allowances on air, surface express, or parcel post shipments. DELIVERIES: GROHE is not responsible for delays in deliveries due to circumstances beyond its control such as fires, strikes, transportation delays, materials shortages, accidents or other contingencies of similar nature. RETURNS: Product may not be returned for credit or replacement without prior inspection and written authorization from GROHE. There will be a charge of 20% to cover handling and restocking for all authorized returns. A 30% charge will be assessed against any unauthorized returns...if accepted. Only merchandise currently appearing in GROHE's price list, which is in resalable condition, will be considered by Grohe for return or replacement with the exception of those pictured products that are designated as discontinued by a ( ) in the current price book. These ( ) products will not be considered for return. DAMAGE OR LOSS: PRODUCT Delivery to the carrier constitutes delivery to the customer. Any claim for loss or damage in transit should be made promptly by the customer to the carrier. Our responsibility ceases when the goods are delivered in good condition to the carrier. We reserve the right to discontinue, alter, modify, or redesign. CHANGES: products without liability for the obsolescence of customers inventories. GENERAL: The possession of this price list by anyone will not be accepted by this Corporation (GROHE) as an obligation or offer to sell any goods listed herein. All prices herein quoted supersede all prior price lists and bulletins. Existing Trade Terms continue in effect. No order, contract or agreement, will become an obligation of the Corporation until accepted, in writing, by the Home Office. LABOR: CLAIMS: No labor charges of any kind will be allowed. Refer to GROHE's limited warranty. All claims must be made within 10 days after receipt of goods. These Terms and Conditions shall be deemed to be a part of all such acceptances by the Corporation and shall supersede any conflicting provisions of customer's purchase order.