Price and Deal Protection - Floor Stock
The Save Mart Companies is entitled to, and may bill back to the supplier, the decline in value of The Save Mart Companies inventory
(store and warehouse) caused by a supplier cost reduction (“Price Protection”).
The Save Mart Companies expects adequate advance notice of all supplier list cost increases to ensure The Save Mart Companies has enough time to react appropriately during changing market conditions.
In most cases at least 30 days is adequate, however, 60 days is needed for edible dry goods, and all other perishables are subject to current market conditions.
Price increases must not apply to items while they are In Deal. If a supplier announces a price increase to become effective during or immediately before a promotion,
the product’s original net price will not be increased until completion of the promotion and performance.
Since the performance was planned and executed, with supplier’s concurrence, based upon the original net price, we intend to keep The Save Mart Companies whole with respect to promotions.
The Save Mart Companies will utilize floor stock protection in the following instances:
- In the event a price reduction takes place without 60 days prior notice the amount of the price decline will be deducted from
the manufacturer on all cases currently on hand or in transit to our Distribution Center(s).
- Floor stock protection will also be taken on all deals that are not received without at least 60 days’ notice and will be deducted
from the manufacturer on all cases currently on hand or in transit to our Distribution Center(s).