Products

Introduction:

This policy sets the definitions and procedures the purchasing division uses in implementing special price allowances (SPA’s) or post offs.

Policy:

SPA’s are supplier discounts off the shelf price of a specific CS code for a specified period of time. They may be in the form of dollars off the shelf price, or additional cases at no cost with the purchase of a minimum number of cases of the same CS code.

Point of sale materials include only departmental floor display and shelf talker signs. The SPA signs will be of two different fluorescent colors indicating whether the SPA is a shelf talker only, or for a floor display. The floor display and shelf talker signs will be of an informative nature and are not intended to give the customer something of value for making the purchase.

The department shall pass special price allowances (SPA’s) onto the customer only on the following basis:

1. Any product that qualifies for SPA’s is allowed a total of five SPA discounts in each fiscal year. Products on SPA will carry either a shelf talker sign or a floor display sign based on the following criteria:

a. Shelf Talkers: A shelf talker SPA is one that is discounted from $2.00 to $2.99 off the shelf price.

Suppliers may choose to use any or all of the five annual SPA’s for a qualifying CS code as shelf talkers. The color of the fluorescent shelf talker sign will be different than the floor display sign. The shelf talker sign will be displayed for the designated month only.

b. Floor Displays: A floor display SPA is one that is discounted $3.00 or more off the shelf price. Suppliers may use up to three of the five annual SPA’s on a qualifying CS code as floor displays. The department shall display a fluorescent floor display sign that is different than the shelf talker SPA sign. Individual store managers will choose which CS codes will be placed on floor display in his or her store according to store capacity. The SPA’s not chosen for floor display will have the floor display sign attached to the shelf site. Floor displays will be full case displays and will be allowed for the designated month only.

Retraction of SPA’s not chosen for floor displays will not be allowed.

2. The number of items chosen for floor display per store by the department will range from no floor displays to a high of 30 displays, depending on the store capacity. A list of the number of floor displays each store will be required to build is available on request from the purchasing department. Floor displays built over and above the required floor displays are at the discretion of the store manager, but they must be selected from the floor display SPA list.

3. Some of the criteria that may be used for products chosen for floor display are:

a. seasonal sales of product;

b. sales volume in relation to profitability;

c. one size of a multiple size product on SPA; and

d. type of product on SPA.

4. Only sparkling wines and champagnes will be chosen by the department for floor display in December. Store managers have the discretion of building more floor displays, but the CS codes must be chosen from the floor display SPA list, and store managers must consider the safety of their stores due to the increase in holiday shoppers.

5. SPA’s on decanters and gift packs will not be accepted.

6. SPA’s on new 375ml size products will be allowed for an introductory period of one year. After the first year of general distribution listing there will be no further SPA’s allowed on 375ml size products.

7. The regular shelf price on which any SPA offer is made must be set two months prior to the pass through month.

8. SPA’s must be received by the department’s purchasing coordinator by the first week of the second month prior to the post off date.

9. Only department point of sale material will be used to draw attention to discounted products during the sale period.

his policy is subject to change without notice. The department reserves the right to alter this policy when it is deemed to be in the best interest of the state of Utah.

Product Post-Off Policy