As your business office, Perfumarie has prepared this summary document to help our brands understand the rules for entry into scalable retail. To begin, each brand must review Vendor Standards, Purchase Order Terms and Conditions and all other applicable documents to understand the terms and conditions of these partnerships. Questions should be addressed with our office prior to shipping:
- By shipping to Perfumarie, the Brand is agreeing to all Perfumarie’s standards and procedures as defined in these documents.
- These are Perfumarie’s Standard Terms with no exceptions.
- All Brands must be EDI compliant. Please contact your Account Manager for a complete list of all required documents, including the (EDI 850) Purchase Order, (EDI 856) Advanced Ship Notice and (EDI 810) Invoice for Macy’s, Bloomingdales, and other chain-store retailers, where applicable.
- All Brands must ship with accurate and scannable GS1128 labels.
- All Brands must undergo pre-EDI testing. This can take up to 8 weeks (on average). Please allow enough time to complete the process prior to the first shipment.
- Terms and staffing levels will be negotiated separately for each multi-store retailer, including Macy’s, Bloomingdales, Barney’s, and Saks Fifth Avenue. Unless pre-arranged otherwise, this additional cost is the brand’s responsibility, where applicable.
- Staffing Contracts must be signed for job requests to be released.
- Terms should be reviewed and agreed upon as part of an opening agreement.
- The contract shall include: Salary, Commission and Override (where applicable):
- Cosmetics Standard Commission: 3%
- Fragrance Standard Commission: 3% (except 8% at select New York Metro area stores)
- Commission and Override = 100% vendor funded
- The Brand is responsible to offset commission paid to associates that assist in the purchase of their product via Macys.Com and/or search and send.
- Perfumarie and stockists partners reserve the right to review all financial transactions regarding sales activities including:
- Status of an Invoice
- Check Detail
- The detail on Chargebacks and RTVs
- Trial Balance Detail (a listing of all financial transactions that have not been released to a check)
- Checks and payment wires are issued monthly but only if the account has more credit dollars, by the due date than debit dollars. All debits and credits will appear on the same check and the check amount is the net of all of these transactions, i.e. debits for Demo, Advertising, etc. are considered debits and will deduct on the same check as invoice payments.
- All payment terms are based on receipt of goods (ROG).
- DIF (Destroy in Field): 100% vendor funded (Testers, Damages and Unsaleable Customer Returns)
- Testers are provided at vendor expense.
- The Brand may provide non-retail testers on a purchase order OR testers can be different from the retail product.
- If a tester is not available, associates are instructed to DIF live retail product (at the Brand’s expense) to accommodate a customer.
- Damages are comprised of products damaged in route or at the store.
- Unsaleable Customer Returns are products that cannot be returned to caseline for sale
- Used product
- Missing / torn or damaged packaging
- Tampered product
- Defective product (must follow defective product policy)
- The DIF expense is deducted from pending invoices on the Vendor’s trial balance. A report would be available upon request.
Expense Offsets:
- All Brands must use follow all retailer’s vendor standards. Expense offsets will be assessed for any deviations to prepare the brand for entry.
- These are usually mutually agreed upon and negotiated by the buyer. Â
- Vendors are responsible for return freight expense and 8% handling fee.
- Buyer to review Old Age Standards with the vendor to ensure they understand the percent of the product that must be current at EOS, as the vendor is responsible to RTV (or MD at their expense) all “ Old Aged” product.
Freight Terms:
- Perfumarie shall review Buyer terms with the Brand in advance. If a freight allowance is negotiated, Perfumarie will deduct the relevant amount of the carrier bill from the brand's check. Â
- A 4.5% handling allowance will be deducted from invoices for all shipments moving outside of the continental United States. In addition, a .5% sales tax will be deducted from invoices for all merchandise shipped from the continental United States to Hawaii.
- When desired, Brands must provide contest/spiff proposal to the Buyer at least 6 weeks in advance.
- All contests must be approved by Retailers and all payouts must use the Retailer Partners’ payroll system.
New Vendor Installation:
- As the Brand’s business office, Perfumarie shall negotiate the Installation Terms Agreement with each Buyer and represent the Brand’s interests.
- LOA Agreement must be fully executed (Perfumarie or vendor signature required).
- Designs must be submitted and approved.