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Sales Management Policy Document

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Sevenza Sales Management Policy

Overview

This policy document outlines the procedures and guidelines for managing sales between Sevenza Canada and Sevenza South Africa, including pricing, markup strategies, billing, and payment terms. The objective is to ensure a clear, efficient, and profitable sales process that benefits both entities while promoting retail sales.

Headquarters and Regional Operations

  • Sevenza Headquarters: Located in Canada.
  • Regional Operation: Sevenza South Africa (Sevenza SA).

Inventory Transfer and Pricing

  • Inventory Transfer: All inventory will be sold by Sevenza Canada to Sevenza SA.
  • Markup by Sevenza Canada: Sevenza Canada will add a 20% markup on the inventory after all expenses.

Markup and Pricing Strategy

Sevenza South Africa

  • Markup Range: Sevenza SA will add a markup between 28% and 35% to the inventory cost received from Sevenza Canada.
  • Direct Consumer Sales: When products are sold directly to consumers, Sevenza SA will charge a 50% markup. The direct-to-consumer price must be slightly higher than the customer retail price to encourage purchases from retailers.

Billing and Payment Terms

  • Billing Cycle: Sevenza SA will be billed by Sevenza Canada every 30 days.
  • Commitment Deposit: Sevenza SA is required to pay a commitment deposit of 50% of the retail value of the inventory.

Encouraging Retail Sales

  • The pricing structure for direct consumer sales by Sevenza SA is designed to be higher than the retail price. This strategy aims to incentivize consumers to purchase from authorized retailers, supporting retail partner businesses.

Compliance and Monitoring

  • Compliance: Sevenza SA must adhere to the markup ranges and payment terms outlined in this policy.
  • Monitoring: Sevenza Canada will regularly review sales and pricing practices to ensure compliance and profitability.

Policy Review and Updates

  • This policy will be reviewed annually or as needed to ensure it remains relevant and effective in achieving Sevenza’s sales objectives.

 

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