Sorry, this isnt quite real estate related but I need an english lesson A retailer has agreed to sell some products, we have agreed on certain prices, and a % or set fee of the sale. however this company has a we will beat any competitors price policy. We have a contract in front of us, it says Margin Percentage: Consignment a few blocks down it says Margin return to supplier In the circumstance where a products Sale price is reduced and a competitiors price is beaten, our margin will be applied to the reduced price, as sold to the customer, and the remaining proceeds will be paid to you within 10 business days this to me states that if they lower their price to beat a competitor , we will get paid the lower price minus the full original comission however, the reps are saying, it says consignment, which means the proceeds to us will always be the original price minus the agreed fee, and if they lower the price, then they will wear it Im a little bit skeptical as to whether the term "margin Percentage: CONSIGNMENT" essentially makes the next paragraph irrelevant sorry again everyone, just need a quick lesson
If the seller has listed it at $25 with 20% commission ($5) but it sells for $22, the commission decreases to $4.40 It does not say if they sell at a lower price to beat a competitor they will charge a set fee.
I read it differently. "in the circumstance where a products Sale price is reduced and a competitiors price is beaten, our margin will be applied" Isn't margin meaning set fee??
Bit difficult to be conclusive on the interpretation of the clause in the agreement when the entire document is unavailable to view. However on the information available I would suggest that the term "margin percentage: consignment" is irrelevant to the understanding of the how much you are to be paid. Consignment - on a literal interpretation is simply that you have provided the vendor a good on "consignment" to sell. The "margin percentage" could be the amount that the seller receives for selling the good you gave it on consignment to sell. For example 20% of the sale price. The term "margin percentage" should be a defined term in the agreement as the two words mean little on their own. I susggest that the phrase "margin percentage: consignment" is nonsensical and irrelevant to determining what you are to receive for the seller on the sale of your good. The real issue is: 1. Have you agreed to receive a set amount for your good irrespective of the sale price of the item; or 2. Have you agreed to let the seller set the sale price of which you receive the sale price net of the seller's commission?
OK. They originally wanted a fixed percentage but we said it's too high and we now basically have a list of products and said commission is $x for $y sale price. The sale price we set. They are saying that if their beat their competitor promotion. They will wear the difference. But I'm reading it differently. I'm not sure if they can or are willing to change the contract it looks pretty standard template. It's just frustrating. Because even though I have multiple emails saying our payment Wont change but if the contract says otherwise and we sign it. We don't want to get itmessy
I would seek a clarification, but to me their sales commission appears set on the actual sale price. You have set a sale price, but the clause "margin return to supplier" allows them to adjust the sale price to beat a competitor. The upshot of this is that They will take their agreed sales commission on the lower sale price and you will receive less for the good supplied. You need to negotiate a fixed $ return for each item sold, irrespective of the sale price.
That's the way I read it too But they're insisting that it's not the case. And I get my set fee regardless of whether they drop the price. And they cannot alter the.contrsct as it goes to everybody. I might post the entire contract up with the company blacked out.... hope that's not unethical or illegal
Contracts don't go to "everybody". Each contract is particular to you and the party you are contracting with, and certainty is a cornerstone of contract. Feel free to make the changes and clarifications you need to feel comfortable, that said the other side don't need to accept it. I suggest the clause you are looking for could read along these lines "The seller shall pay to the supplier the sum of $x within y days of the sale of (name of good) without deduction". The trigger point for you being paid is the sale and receipt of funds, not the sale price.
