The basis for outright commission and discounts is the net lot price

To    :   Pangasinan

Thru:    GM Madel

SUBJECT:    The basis for outright commission and discounts is the net lot price

Goals:

1.  To lessen expenses for commission and discounts

2.  To correct past mistakes;

3.  To lessen wrong doings by staff and other sellers

Background:

Yesterday, I was asked to sign docs and I examined the PPA and the outright commission vouchers and the discount vouchers.  Lo and behold, they were based on the gross selling price.  (The PC and VAT were discounted and given commissions)  PLEASE BE REMINDED THAT WE ARE OPERATING ON VERY NARROW MARGINS AND WE GET ONLY 13% for our gross sales, we give them away

Reminders:

1. Commissions and discount, (for cash purchase OSCA discounts) are based on net lot price  NOT ON GROSS SELLING PRICE

2.   Maximum discount for cash sales is 10%  However, the CSS and the CMO must be smart enough to give them away (reminder again that our net margin after CGS but before interest and OPEX is only  13%.  We are not wallowing in money.   Money is not coming out of our mouth and ears.  Gutom nga.  Do not give them away

You can start with 5% and end up at 7%.  

3.  The SFC, at the SBUs and the accounting staff at 3ffb, ICR and the officers must CHECK AND EXAMINE THESE COMPLIANCE.

FOR STRICT COMPLIANCE

Jorge  U. Saguinsin

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