DISCOUNTS
Volume Discount Schedule, 2011
South Riding Nurseries, LLC is pleased to offer our customers in good standing the opportunity to earn attractive discounts based on their purchase volume and prompt payment record. Our volume discount schedule for 2011 is as follows:
| PURCHASE VOLUME | DISCOUNT |
|---|---|
| Up to $10,000 | 0% | $10,000 - $25,000 | 5% |
| $25,000 - $50,000 | 10% |
| $50,000 - $75,000 | 15% |
| $75,000+ | 20% |
All accounts without an established discount start the year with no discount. As your account grows and volume increases from one level to the next a five per cent (5%) rebate/credit will be applied. For example:
A customer starts with no discount. After reaching a total purchase volume of $10,000, the customer will receive a rebate of $500 (5% of all sales) and a discount of 5% on all future sales. When the customer reaches $25,000 in purchases, they will receive a rebate of $1,250 (5% of all previous sales) and a discount of 10% on all future orders. When the customer reaches $50,000 in purchases, they will receive a rebate of $2,500 (5% on all previous sales) and a discount of 15% on all future orders. Finally, when the customer reaches $75,000 in purchases, they will receive a rebate of $3,750 (5% on all previous orders) and a maximum discount of 20% on all future orders. This allows customers the opportunity to receive the benefit of their best discount on all goods purchased within that year.
Volume is based on total net purchases not including freight and sales taxes. Discounts are good only on plant material and do not apply to any hardgoods. Hardgoods purchases do count, however, towards the customer’s total net purchase volume. Discounts can only be applied to invoices paid within terms and by accounts that are in good standing. Discounts cannot be applied to quoted material, sale items, already-discounted items and special net-priced items. Total net purchases from the previous calendar year (Jan 1–Dec 31) will be used to establish the current year’s discount. Rebates will be applied as credits to the customer’s account and to the oldest outstanding invoice.