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WAM Distributors agree to perform for the "preferred suppliers" and to utilize the programs and point-of-sale racks and materials supplied by WAM. This includes a Monthly Pre-Book Promotional Book which WAM Distributors utilize as their primary vehicle to promote the products and promotions of the "preferred suppliers". The Monthly Promotional Book is customized for each WAM Distributor with its selling prices. There is no charge to the WAM Distributors for the books or the shelf-talkers utilized with some of the promotions. Suppliers subsidize these costs. WAM
also contracts with manufacturers to compensate retailers serviced by
the WAM Distributor for stocking, selling and promoting the
manufacturer's products. WAM receives sales data from each WAM
Distributor to determine the amount due each retailer. WAM Distributors
obtain an agreement from each of the retailers they service who desire
to be included in the WAM Retailer Rebate Accrual Program, authorizing
WAM to collect money on its behalf from the manufacturer or supplier.
WAM agrees to pay the participating retailer a percentage of the money
collected. Checks are issued directly to participating retailers at the
close of the 1st quarter following the year in which the money was
earned. WAM Distributors are given these checks for delivery to their
retail accounts. Many of the WAM Distributors have a WAM Booth at their
annual spring trade shows and utilize the event to distribute the checks
to their customers. |
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