Program Overview
On our volume rebate agreements, rebates are earned when volume-based turnover targets have been reached. Our stratified rebate arrangement is based on 3 levels of flooring square meterage sales volume on a month-by-month basis.
| V1 | Rebate Volume Level 1 |
| V2 | Rebate Volume Level 2 |
| V3 | Rebate Volume Level 3 |
| R1 | Rebate Rate Level 1 |
| R2 | Rebate Rate Level 2 |
| R3 | Rebate Rate Level 3 |
The Volume (Vn) set for the minimum square meterage needs to be achieved to attract the corresponding rebate rate (Rn).
For example, customer A Flooring Co. has the following agreed rebate agreement in place.
| R1 | 1% | V1 | 2’500M² |
| R2 | 2% | V2 | 3’000M² |
| R3 | 3% | V3 | 3’500M² |
Scenoario 1
From 1st March 2021 – 31st March 2021 sales volume of flooring = 3’200 SQm²
V2 target has been met and the R2 rate is at 2%. The total sum spent on the 3’200m² is £83’840.00 exclusive of VAT.
£83’840.00 * 2% = £1’676.80
A credit of £1’676.80 plus VAT will be issued as a credit to the rebate account to offset against another transaction. The rebate credit is issued one month in arrears. In this scenario, the rebate accumulated in March 2021 will have the credit issued by the last day of April 2021.
Scenoario 2
From 1st March 2021 – 31st March 2021 sales volume of flooring = 4’000 SQm²
V3 target has been met and the R3 rate is at 3%. The total sum spent on the 4’000 SQm² is £104’722.56 exclusive of VAT.
£104’722.56 * 3% = £3’141.68
A credit of £3141.68 plus VAT will be issued as a credit to the rebate account to offset against another transaction. The rebate credit is issued one month in arrears. In this scenario, the rebate accumulated in March 2021 will have the credit issued by the last day of April 2021.
Program Eligibility
The volume incentive rebate program is subject to status and application for customers holding the Signature tier only.
Program Terms & Conditions
- The volume incentive rebate program is subject to status and application. Volume rebates are paid only after threshold (V) targets are met. Thresholds targets vary and are subject to review every 3 months.
- Only wood flooring qualifies for a rebate. Any new invoices issued after the rebate program agreed will apply to the threshold. All calculations are in pound sterling and based on net value. Thresholds are set for each business profile.
- The volume incentive is calculated and the credit note is raised one month in arrears. The credit can be used against future transactions but not allow to redraw as a refund. The credit note calculates the time period that cumulatively meets or exceeds the threshold.
- If in any month, the total sales value is a negative balance due to a refund. We will claw back the previous month’s rebate (if any) and your rebate account will be suspended until we inform you otherwise.
- Promotional sales from the monthly “Promotional Sales Allocation Directive” will not be counted towards this rebate program.
- This program can be withdrawn at any time and we will inform you before the new month starts if the program is no longer available.