Supplier Connections - Navigating KeHE | Page 40

PROMOTIONAL PASS METHODOLOGY

CHAIN GROCERY + COST PLUS INDEPENDENTS

PUBLISHED OI( OFF INVOICE) & MCB( MANUFACTURER CHARGE BACK) PROMOTIONS ARE PASSED THROUGH DOLLAR TO DOLLAR
• Book deal with any combination of MCB or OI
• Example:
• Sell price from KeHE to retailer: $ 1.20
• Manufacturer MCB or OI: $. 15
• Retailer promotional price: $ 1.05
• The pass is penny for penny OI to the retailer
ACCOUNT SPECIFIC DEALS
• MCBs are negotiated by Account Manger using customer price
• Contact the Account Manager with any retailer specific questions
PUBLISHED OIs ARE CALCULATED OFF SUPPLIER COST( JOBBER)
• Deal calculation( jobber($ 2.00) x 10 % OI =. 20 deal)
• KeHE passes. 20 / unit retailer. 100 % of Supplier’ s promotional allowance

LIST LESS INDEPENDENTS

PUBLISHED MCBs ARE CALCULATED OFF ITEM WHOLESALE
• Deal calculation( wholesale($ 2.89) x 10 % MCB = $. 289 deal)
• Pass calculation( wholesale($ 2.89) x 10 % published = $. 289 deal)
•* applied to base wholesale then VD is applied after
FEATURED DEALS & NATIONAL CASE STACK TIER DEALS – OI IS“ OVER REFLECTED”
• Deal calculation( jobber($ 2.00) x 15 % OI = $. 30 deal)
• Pass calculation( wholesale($ 2.89) x 15 % published = $. 43 Deal
• True Pass to retailer is 15 % off wholesale( 4.62 % KeHE funded)
• The Pass is over reflected( OI component only)
• MCB component off item wholesale
• Cost + Retailers receive only supplier monies
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