A. Quantity to be ordered
Current style business shirts - 50%
Knit Sport shirts - 50%
Overall increase/decrease – 500 Increase
Minimum quantity to be ordered 1000 shirts
B. Retail margin – 2.5 per shirt
C. Advertising
Frequency – 2 x month
Cost Split – 50/50
Content responsibility – At retailers choice > As long as it is the manufacturers products
D. Trolley supply
Number to be supplied - 50 trolleys (1 in each store)
Contributions per trolley $5 retailer > $5 manufacturer
Timing of supply – 10 days
E. Order Time – 7 Days
F. Price promotions number – 4 times yearly
G. Payment discount period – 15 days
H. Special packaging
Period – 3 months
Cost responsibility 50/50
I. Ongoing commitment
Retailer committed to constant ordering/reduce likelihood of buying other sport knit shirts.
Some customers would certainly be lost as it is estimated that 25 % to 60% of Sydney customers will not purchase substitutes and will instead visit another store.
The most important factors in this arrangement are a commitment to long-term product diversity and contributions by Sydney towards assisting our firm in retaining and increasing our stores attractiveness and desirability to customers.