Definitions
The amount charged by the supplier to ADS; the supplier's price to us equals our ____.
What is 'COST'?
What is a 'PREPAYMENT'?
A prepayment is the sum paid for goods or services before their receipt or invoiced due date. In other words, a company has ordered and paid for goods or services but has not received anything yet.
NDC (Non-Discounted Cost) is $100. We have a DOR (Deal of Record) at 10% of NDC. What is ADS's cost?
$90. $100 (NDC) - 10% ($10) = $90 (ADS's cost)
FALSE. We CANNOT ask or tell a supplier not to price other primes. If they ask, advise it's their decision. Instead, you can ask, 'Can you provide us a DOR on this due to the value we provide?'
Stands for “Value Added Discount” and is the discount we receive based on the value we provide to the deal.
What is a 'VAD'?
What is the definition of 'MSRP' and what does it stand for?
Stands for 'Manufacture's Suggested Retail Price' and is the price a manufacturer recommends to a retailer to sell it for.
What are 'PAYMENT TERMS'?
Payment terms are the conditions surrounding the payment part of a sale, typically specified by the seller to the buyer.
What is the MAX mark-up for SOE and FES?
15%
T/F - It's NOT ok that ADS's discount be exclusive.
FALSE - It's OK to ask that ADS's discount be exclusive! However, we CANNOT tell them what to charge us or others.
Stands for “Dealer of Record” which is an earned percentage discount, registered for by only one reseller for a specific transaction based on work put in with the customer and/or due to relationships with respective manufacturers.
What is a 'DOR'?
This is the actual profit earned.
What is 'MARGIN'?
What are the ideal payment terms?
NET 30.
What is the MAX mark-up for SOE TENT?
10%
T/F - It is NOT ok to ask that ADS be "protected" at a certain cost.
TRUE. This is NOT ok! This sounds too much like a bribe or improper influence.
The amount at which ADS is quoting / bidding for the sale of the item to our customer.
What is 'PRICE'?
This is the percentage over Cost that ADS uses to determine the selling price.
What is 'MARKUP'?
FALSE. Payment terms ARE negotiable!
What are the three ways to show pricing justification to DLA for TLS RFQs?
1 - MSRP
2 - GSA prices
3 - Vendor quote to ADS
Is this OK to say?: What tier discount is ADS receiving and are we the only contractor at that tier?
The amount or price a supplier charges (or would charge) for the items to others (without ADS’s Discount). Sometimes this is the MSRP.
What is 'NON-DISCOUNTED COST (NDC)'?
What is 'DISCOUNT'?
There is a prepayment on your quote received. What does finance look in to, to ensure they can approve the terms?
-Total cost of the deal and finance costs
-Lead times
-Supplier past performance and delivery
-Deal strategy (do we have enough margin on the deal currently to support the prepay)
What are the NINE components included in DEAL STRATEGY in Salesforce quotes?
SUPPLIER
VAD
DEAL STRATEGY
PREPAY
PAYMENT TERMS
PRICE JUSTIFICATION (PJ)
TYPE
FREIGHT
TOTAL FREIGHT AMOUNT
T/F - It's OK to tell a supplier to set its non-discounted cost (NDC) at our desired cost.
FALSE. We make money by earning value-added discounts from supplier, NOT by artificially inflating other's cost to give us a 'discount'; a discount goes down not up!
A strategy where suppliers offer products at different price points (i.e., tiers) to their
customers (i.e., ADS and others) based on certain factors (e.g., quantity, level of service, value provided, etc.). For example, a supplier may have a distributor pricing tier that comes with a standard discount off of its MSRP for all distributors. Distinguished from DOR in that it is not deal-specific.
What is 'Tiered Pricing'?