|KOR Dealer Agreement for Wholesale|
Note: We will not accept applications for wholesale accounts from anyone without a valid business license, tax ID number, and business phone number.
I like to keep things as simple as possible, normally, but this is one of those things that it makes sense to be wordy so that everyone knows where they stand from the get-go. I'm more than happy to explain anything that doesn't make sense to you immediately, and will attempt to do so in the verbiage to follow.
First, as with most wholesale accounts, there are various pricing levels, or tiers. A well-instituted MAP allows everyone to make a fair profit margin on the resale of our items, rather than letting people auction a bunch of stuff off on e-Bay for a dollar over their cost and hurting everyone else in the process. (And, besides, the last thing we want is a precedent set that our product A is only worth $50 (because it sells for that on eBay) when everyone else is charging $75 for it on their websites). Here is our pricing structure:
|Price Category||Requirements||Discount %||Margin %||Total Sales||Min Yearly Sales*|
|Jobber (D1)||Level 1 Qualification||10%||11%||N/A||N/A|
|Master Distributor (D2)||Level 2 Qualification||20%||25%||$2500||$1000|
|Warehouse Distributor (D3)||Level 3 Qualification||25%||33%||$5000||$5000|
|Retail Installer Discount (D4)||Level 4 Qualification||40%||67%||$2500||$2500|
Level 1 Qualification:
1) This form printed, signed, and faxed back, as well as the following three items:
2) Copy of your State-issued driver's license
3) Copy of your State-issued resale license, giving you permission to do business. Name on the license must match driver's license. If there is a corporation name on your business license, I'll need a copy of your articles of incorporation, signed by you.
4) A check for $2500 to get you started with the discount process.
Kevin is waiving the buy-in for those who act quickly: all paperwork needs to be turned in before the END OF THIS MONTH in order to receive this special treatment!!
Level 2 Qualification:
Everything necessary for Level 1, and in addition, $2500 in total product purchases, your agreement to uphold our MAP policy, and $1000/year minimum in sales, based on the last rolling 12 month average.
Level 3 Qualification:
Everything necessary for Level 2, and in addition, $5000 in total product purchases, your agreement to uphold our MAP policy, and $2500/year minimum in sales, based on the last rolling 12 month average.
Level 4 Qualification:
Everything necessary for Level 2, and in addition, a verifiable business address where installations are being performed, a verifiable photo of your building and company sign in the same photo, an established local sales base (majority of revenue NOT coming from web sales), $2500 in total product purchases to begin, and $2500/year minimum in sales, based on the last rolling 12 month average.
So, it's really simple. After you've achieved the $2,500 minimum sales of KOR manufactured products, you can sell at MAP or Retail, purchase at MAP minus your discount, and make a minimum of 25% profit margin. When you make it to $5,000 total purchase of KOR manufactured products, you can sell at MAP or Retail, purchase KOR products at MAP minus 25%, and make a 33% profit margin. Don't you wish the stock market worked that way??
If you're a "bricks and mortar" Retail shop, KOR wants to offer you an additional 15% (15-points, bringing your margin to 67%) when you're selling to your local market, because we know that your shop requires a lot more overhead expense than a web-only business does. There are a few extra hoops you need to jump through, but it's totally worth it. You do the sales for us, take good care of your local customers, and we'll reward you nicely. And, you get to keep the install revenue!
All accounts must be paid in advance, preferably via credit card. We're not large enough yet to offer 30 day billing, nor are we looking forward to hire accounts receivable personnel.
The prices listed on our website are the current MAP pricing for now. In the future, the website will offer prices to customers at MAP + 10%, adding even more profit in for you, but for now, everyone is going to be at the same price as the website, which can be used for reference when dealing with customers. We all need to work together and preserve the profit margins or we're going to be cutting our own throats in the long-term. Now, I can't TELL you what to sell something for...that would be price-fixing, punishable by law, and I have better things to do than hard-time upstate, lol. However, I CAN tell you that you are in violation of the Dealer Agreement if you break our agreement to advertise any of our items below the MAP price, and you've just breached contract. Any dealers who advertise our products below MAP will be immediately removed from our system without any warning or dispute. Just gone. Removed. Bye bye. Don't be that guy.
So, ready to get started making some money? Here's the FORM to fill out and fax back.