Additional Discounts Possible: There are a number of areas where customers and WAXIE can work together to reduce costs, prices, and the impact of the contracts fulfillment on the environment.
· Minimum Order: A minimum order dollar amount could be implemented that would reduce the number of transits dramatically. The largest contribution to environmental impact fulfillment of the contract has is the amount of fuel used to get product from our warehouses to our customers. WAXIE can provide detail regarding these impacts and would look to negotiate a pricing reduction if a minimum order is incorporated into the contract. Customers agreeing to a minimum order of $400 can receive up to a 1% discount on all orders.
· Scheduled Delivery: Another effective way to impact costs is to work with customers to schedule delivery. For customers with large capacity warehouses this enables both WAXIE and the customer to best utilize their labor and capital resources. For instance our overall business sees 65-70% of product moved the first and last week of the month. We routinely work with large clients to schedule delivery during the slower periods of the week and month to optimize our labor and capital resources. WAXIE is interested in negotiating a price concession with the Colorado customer if the customer is willing to allow a scheduled delivery program to be part of this contract. Customers agreeing to schedule delivery, reduce the number of deliveries by half and agree to receive orders on a mutually beneficial schedule may receive up to a 1% additional discount on all orders.
· Electronic Payment: Automated Clearing House/Electronic Funds Transfer payment can substantially reduce the time between invoice and payment. Many public sector customers are able to work with these electronic invoice and payment systems and WAXIE is willing to negotiate an incentive for customers to use ACH/EFT payment. Customers that are able to use ACH for all invoice payments can receive up to a 1% discount for all purchases.
· Green Products: WAXIE is willing to provide an incentive for customers to “Go GREEN”. WAXIE promotes environmental stewardship within our own company and to our customers in all markets. WAXIE is willing to negotiate a price rebate or concessions to customers that meet GREEN spend goals agreed to with Waxie. Customers that agree to use only third party verified or dFe (EPA Designed for the Environment) cleaning chemicals, floor care, carpet care, toilet tissue, paper towels, napkins, and plastic can liners that meet either BPI (Biodegradable Products Institute), or SCS standards for compostability or recycled content, or use high density liners, can receive up to a 1% discount on all purchases. |