|
Selling to US Chain Store Payment Procedures And Detailed Service Plan
Payment Procedure:
Total Cost:
US Dollars 80,000
1st Payment:
50% of the agreed amount ($40,000) after signing the contract. The supplier has to provide quality guarantee letter for the product.
2nd Payment:
30% of the agreed amount ($24,000), after chain-store customer place an order.
3rd payment:
20% of the agreed amount ($16,000) after AMC receives the payment from the chain-store customers.
Sales Commission:
In Addition, AMC shall receive a commission of twenty percent (20%) of net invoice amount.
Commissions checks will be paid to AMC upon the 25th of each month based on monies received. AMC
will deduct the commission amount from the payment.
Bonus Incentive:
In addition to commission payments, AMC shall be entitled to a sales bonus according to the following schedule of total
yearly sales:
-
$1,000,000- $3,000,000 2% of annual gross sales
-
$3,000.000- $6,000,000 2.5% of annual gross sales
-
$6,000,000- $9,000.000 3% of annual gross sales
The bonus provided for this section is based upon booked orders for which payment has been received over a 12 month
period. This twelve month period will begin in the first month of the first paid and shipped order. For the purposes of this section “ Total Yearly Sales” is an amount equal to the total of all sales to which commissions was paid during
a calendar year with respect to sales of a product covered by this agreement.
Detailed Services and Schedule:
After the 1st payment: (2-3 months)
-
Revise the label design and wordings to meet FDA requirements
-
Create literature, brochure, booklet for the product in English/ Chinese or maybe Spanish
-
Import the raw material to run the first sample batch
-
Insure the product to cover 2 million dollars insurance
-
Apply for the FDA free sales certificate
-
Send the product out for testing of heavy metal, potency test
-
Attend professional organization like American Herbal Products Association, National Nutritional & Food Association
After the 2nd Payment: (1-2 months)
-
Make appointment with chain-store buyers
-
Fly to meet the chain-store buyers to discuss the sales of the product
-
At the same time, send literature / sample to 5000 health food stores
-
Send fax to 8000 vitamins stores for promotion
-
Send literature / sample to 500 distribution companies
-
Send literature / sample to catalogue companies
-
Advertise on the nutrition magazine
-
Internet promotion
3 rd payment (1-2 months)
-
Get purchase order for customers and fulfill the orders
-
Get paid from the customer
-
Deduct the 3rd payment
-
Maintain the chain-store accounts and promote the products further to Canada, Mexico, South America and European countries
|
