AS A CORPORATE POLICY WE CANNOT GIVE EXCLUSIVES OR PROTECT THE CUSTOMERS OF ONE OF OUR DISTRIBUTORS FROM BUYING FROM ANOTHER OF OUR DISTRIBUTORS, OR FROM OURSELVES DIRECTLY.

WE SHOULD, HOWEVER, CHARGE MORE TO A DISTRIBUTOR’S CUSTOMER THAN OUR DISTRIBUTOR WOULD CHARGE. THIS GIVES OUR DISTRIBUTOR THE PROTECTION THAT HE IS USUALLY LOOKING FOR AND WE ABSOLUTELY WILL NOT BYPASS OR UNDERCUT HIM.

THIS POLICY ALSO GIVES US “PREMIUM PRESTIGE” TO THE DISTRIBUTOR’S CUSTOMER. IF HE THEN DOES BUSINESS WITH US IT WILL BE BECAUSE HE WANTS TO PAY A PREMIUM TO DEAL DIRECTLY WITH US, AND NOT BECAUSE HE THINKS HE WILL BE GETTING A BETTER DEAL.

WE CANNOT GUARANTEE PRICES AND PRICING REGARDING THIS POLICY BUT THIS IS OUR BASIC OPERATING CONCEPT. IF WE FIND OURSELVES IN A COMPETITIVE SITUATION WITH ONE OF OUR DISTRIBUTORS, OVER AN ACCOUNT, WE SHOULD LET OUR DISTRIBUTOR KNOW THIS POLICY AND TELL HIM THE PRICE WE ARE QUOTING, SO THAT HE CAN UNDERCUT IT TO HIS CUSTOMER.

IT IS IN OUR BEST INTEREST TO OVER CUT WHERE POSSIBLE AS THIS WILL HELP TO DEVELOP BOTH OUR IMAGE AND DISTRIBUTOR RELATIONS.