10. What are the costs of using AUR DIRECT for Retailers?
There are no changes to retailers’ current Chargeback Plus trading terms or arrangements. AUR DIRECT is an upgrade for all retailers available at no additional cost.
The AUR DIRECT web-portal displays purchase prices on all products, recommended retail prices and the calculated Gross Profit percentages based on these two prices. The purchase price retailers see is a transparent price with no additional fees.
11. What are the costs of using AUR DIRECT for suppliers?
There are no changes to suppliers’ current Chargeback Plus trading terms or arrangements.
There are no changes to optional additional services made available to suppliers, over and above allowance, catalogue promotions and similar. AUR DIRECT reserves the right to offer suppliers further optional services aligned with ChargeBack, and rates for these services will be agreed with suppliers.
12. What if a Retailer has already negotiated a deal with a Supplier outside of AUR DIRECT?
There is no obligation on retailers or suppliers to trade through AUR DIRECT, but AUR has developed the AUR DIRECT platform to support retailer-specific pricing should retailers and suppliers want to access the benefits of the new platform for directly negotiated deals.
AUR DIRECT shows a purchase price and a recommended retail price for each product, and the purchase price may be adjusted by the supplier to be a retailer-specific purchase price to reflect a unique deal negotiated between the retailer and supplier.
13. Does AUR DIRECT still calculate a Suggested Retail Price and will this automatically update a Retailer’s Retail Price?
AUR DIRECT offers a product purchase price to retailers – either the supplier’s list price or the supplier’s retailer-specific deal price. The AUR DIRECT platform displays the supplier’s Recommended Retail Price (RRP) and will also show the associated Gross Profit Percentage (GP%) on the product. In the current build, AUR DIRECT does not calculate a Suggested Retail Prices (SRP) from the purchase price to deliver a specific pre-set margin for the retailer. The host file report within the retailer’s point-of-sale and back-office system will identify cost and GP changes to the retailer, allowing margins to be actively managed as per retailers’ current process for warehouse managed products. In all cases retailers remain free to determine actual retail prices offered in store (subject to any obligations not to exceed any maximum resale prices).
14. How frequently will prices update, and how much notice will Retailers get to review and update store pricing (if required)?
Suppliers can update pricing and offers through AUR DIRECT – downwards for periodic promotions, and potentially upwards for long-term price increases. AUR DIRECT will align with existing practice of providing a lead time to host any price changes down to retailer’s systems, with a 14-day lead time required. Effective dates of those price changes will be in the host file, however it is dependent on a retailer’s point-of-sale and back-office system how these effective dates are managed, as per current process with warehouse products. For fresh products, invoice prices may change daily based on market conditions as per current business practices. AUR DIRECT will continue to host a nominal list price as managed by the supplier.
15. Will retailers have a credit limit for purchases made through AUR DIRECT?
Credit limits will be set individually by retailer and applied in the same manner they are currently applied for ChargeBack Plus.