This Distributor Policy sets the long-term, sustainable principles for working with Usolab Philippines’ authorized distributors and resellers. Our goal is to share opportunities, protect partners, and grow the market fairly across the entire network.
Partnership Principles
- Shared value: We share profit opportunities and business benefits, building long-term, sustainable partnerships.
- Active support: Ongoing assistance, training, and joint programs to strengthen distributor–manufacturer ties.
- Market protection: We help shield partners from unreasonable market shocks and unfair competition.
- Customer protection: We uphold fairness across the network and protect customers acquired by each distributor.
- Territory growth: We collaborate to expand territories and channels in a planned, orderly manner.
1) Quarterly Purchase Rebates
- Eligibility: Based on your committed quarterly volume, you may join the purchase rebate program dedicated to distributors.
- Payout: When the committed volume is achieved, a rebate rate (agreed at the start of the quarter) applies to net qualified purchases.
- Independence: This rebate runs independently of other trade promotions or marketing support.
2) Pricing & Price Protection
Purchase Pricing
- Pricing tiers are assigned by distributor level and other cooperation commitments, aiming for competitiveness and healthy margins.
Price Decrease Protection
- If the Manufacturer/Distributor reduces list prices, you receive price protection on the same SKUs held in your verified on-hand inventory within 30 days from the price-change notice.
Price Increase Notice
- If list prices increase, advance notice is provided 15–30 days so you can plan procurement accordingly.
Customer Protection & Lead Attribution
- Each distributor is assigned a Distributor ID. Customers referred by or tied to your ID are attributed back to you if they contact us directly.
- Walk-in/retail leads contacting the principal are routed to the distributor serving their location.
- New-site protection: We protect your development rights on new approved locations for at least 3 months (up to 6 months) across the channel.
3) Framework Agreement & Credit Terms
Framework Agreement
- Upon signing the Framework Agreement, you are listed as a preferred partner and become eligible for Distributor Policy benefits.
Payment & Credit
- Default terms: 100% payment before dispatch.
- Improved terms: Based on cooperation history and payment performance, you may qualify for enhanced credit or tailored terms.
4) Partner Support
PR & Marketing
- Co-op assets: catalogues, leaflets, banners, and other materials under official campaigns.
- Co-advertising: Your outlet details may appear in joint promotions on media and usolabph.com.
- Participation in all trade promotions by the Manufacturer/Distributor.
- Official certificate of authorized distributorship.
- Regular updates: pricing, product changes, policies, marketing toolkits, and sell-out boosters.
Technical & Training
- Hotline and on-site technical assistance when needed; manufacturer specialists may be engaged for escalations.
- Structured training by distributor level: product lines, technology, and sales competencies.
Merchandising & Samples
- Product exchange within 7 days of invoice for verified manufacturer defects (or best-effort resolution if no stock).
- Returns within 7 days if shipped items or pricing do not match the confirmed order, with a signed handover record.
- Demo/Trial units may be loaned for new launches or new outlet openings (coordinate in advance).
5) Distributor Responsibilities
- Territory management: Proactively grow customers and the market in your approved area.
- Professional operations: Build a strong, compliant sales network and uphold brand standards.
- Expansion rule (first-mover principle): New branches may receive system-wide protection when pre-registered with plans and locations.
- Activation window: If no rollout occurs within 3–6 months after protection approval, the principal may reassign protection to the next applicant.
- Network programs: Participate in principal-led expansion and marketing roadshows in nearby areas on a first-mover basis.
- Brand integrity: Do not trade products of unclear origin; exclusive distributors should avoid competing look-alike brands.
- Retail price discipline: End-customer pricing should align with the suggested retail price; no price dumping.
6) Notes & Limitations
- Turnover basis: All thresholds/targets are computed on net of discounts.
- Non-convertibility: Values from support programs cannot be converted to cash, goods, or any other form.
- Eligibility: Support items typically apply only to direct-contracted distributors following the agreed process and terms.