Commercial Matrix of Different L4C Business Partnership Setups

Term of
Reference
Territory
Exclusivity
Month Sales
Target
Basic Discount
TOD
Total Discount
Payment
Schedule

Credits

Market Value
Basic Discount
TOD
Gross Discount
Order Value

Super
Distributorship
(SD)
State
One in A State

Division
Distributorship
(DD)
Division
One in A Division

Master
Distributorship
(MD)
District
One in A District

Distributorship
(DS)

42, 00, 000.00

9, 10, 909.00

4, 18, 333.00

City/Town
One in A
City/Town
1, 55, 385.00

45%
5%
50%
50% with Order,
50% by 15 days
PDC

40%
5%
45%
50% with Order,
50% by 12 days
PDC

35%
5%
40%
50% with Order,
50% by 10 days
PDC

30%
5%
35%
50% with Order,
50% by 7 days
PDC

INITIAL CREDITS IN ELECTRONIC FORMAT

42, 00, 000.00
9, 10, 909.00
4, 18, 333.00

42, 00, 000.00

18, 90, 000.00
2, 10, 000.00
21, 00, 000.00
21,00,000.00

FINANCIAL MATRIX
9, 10, 909.00
4, 18, 333.00
3, 64, 363.60
1, 46, 416.55
45, 545.40
20, 916.45
4, 09, 909.00
1, 67, 333.00
5, 01, 000.00
2, 51, 000.00

Dealership (DL)
City/Town
No Exclusivity
28, 000.00
25%
0
25%
50% with Order,
50% by 4 days
PDC

1, 55, 385.00

28, 000.00

1, 55, 385.00
46, 615.50
7, 769.50
54, 385.00
1, 01, 000.00

28, 000.00
7, 000.00
0
7, 000.00
21, 000.00

7000.00

MARGINS
Direct Sale to
User
If Sold to
Dealer
If Sold to
Distributor
If Sold to MD
If Sold to DD

21, 00, 000.00

4, 09, 909.00

1, 67, 333.00

54, 385.00

10, 50, 000.00

1, 82, 182.00

62, 750.00

15, 539.00

6, 30, 000.00

91, 091.00

20, 917.00

4, 20, 000.00
2, 10, 000.00

45, 545.00

PAYMENT AT EXECUTION OF AGREEMENT

Current Date
Cheque
Draft / CASH
Post Dated
Cheque

Authority to
appoint
Business
Partners
Marketing Staff
Support

10, 50, 000.00

2, 50, 500.00

1, 25, 500.00

50, 500.00

10, 500.00

10, 29, 000.00

2, 45, 490.00

1, 22, 990.00

49, 490.00

10, 290.00

10, 50, 000.00

2, 50, 500.00

1, 25, 500.00

50, 500.00

10, 500.00

DD,MD,DS,DL &
Sub-Dealer(s)

MARKETING SUPPORT
MD,DS,DL & SubDS,DL & SubDealer(s)
Dealer(s)

DL & SubDealer(s)

Sub-Dealer(s)

1 SM & 10
1 ASM & 5
2 Marketing
1 Marketing
Regular Visits of
Marketing
Marketing
Executive
Executive
Marketing
Executive
Executive
Executive
Remuneration Structure for Marketing Personnel:
Sales Manger (SM)
1st 3 Months- Basic Salary 13,000 HRA 6,500 Conveyance Allowances 500 + 1% of L4C Billing in Territory
after 3 Months- Basic Salary 16,000 HRA 8,000 Conveyance Allowances 1,000 + 1% of L4C Billing in Territory
Area Sales Manager (ASM)

1st 3 Months- Basic Salary 8,000 HRA 4,000 Conveyance Allowances 500 + 1.5% of L4C Billing in Territory
after 3 Months- Basic Salary 9,500 HRA 4,750 Conveyance Allowances 750 + 1.5% of L4C Billing in Territory
Marketing Executive
1st 3 Months- Basic Salary 4,000 HRA 2,000 Conveyance Allowances 500 + 2% of L4C Billing in Territory
after 3 Months- Basic Salary 6,000 HRA 3,000 Conveyance Allowances 1000 + 2% of L4C Billing in Territory