New Supplier Information

Trading Compact and Deal Proposal Form

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Introduction

Hardware & Building Traders Pty Limited (HBT) is a buying group whose members are independent retailers of hardware, garden, timber and/or building materials. This is to introduce the group to you, to let you know how we work and to advise the terms and conditions on which we and our member stores would trade with your business.

HBT has only two mutually reinforcing objectives :-

  1. To deliver lower buying prices for our member stores; and
  2. To deliver increased business for our suppliers

Everything we do is geared around these objectives and we have a minimal administration to ensure that our costs do not eat into our member's margins or erode the competitiveness of your trading terms.

Because HBT is privately owned by its founding stores, it doesn't suffer from the bureaucratic shortcomings of some larger groups and cooperative style organizations.

How we work with our suppliers

Our structure is simple. We contract with each of our suppliers to deliver their deal terms to our members. We encourage our members in the strongest possible terms to give the maximum support to each deal consistent with their own business objectives.

We do not buy or sell any product. Our role is to agree and administer the terms of each deal and to work with our suppliers to maximise deal performance. We do not guarantee payment by our member stores.

Because we have limited resources, we ask each supplier to provide appropriate representation to our member stores. They need to receive catalogues, price lists and promotional material directly from you.

Some promotional material concerning our buying group is with this document and a current member list is included.

How do you become a registered supplier?

Our Executive is responsible for approving deal terms with any supplier for registration. A Deal Proposal Form is downloadable from this site.

A request for registration of a deal should be accompanied by a completed Deal Proposal and supported with such other product, pricing or promotional information as you think appropriate.

Once a deal has been registered, we provide you with a final 'signed off' copy and distribute it to our members for inclusion in their Deal Directory. At that time we will ask you to contact all the members to open trading accounts with you and ensure that they have all the information they need in order to deal with you.

For Calendar 2011 the Executive is:

Mitch Cameron 02 4472 4629
William Abi-Arrage 02 9604 5557
Steve Sanders 08 8842 1171
Dave Kent 02 6362 7011 
Carmel Menara 03 9523 6000 
Steve Guppy 03 5782 1955
Jeff Grillmeier 07 4982 4844 
Andrew Davies 03 6311 0779 
Ash Severin 08 9821 1411
Tim Starkey 02 4472 1515 - Head Office

Supplier Status

We register suppliers on one of two status. Either as Preferred or Registered. Preferred Status confers the following benefits :-

  • Members are required to make at least 70% of purchases in that category from the supplier; and
  • The supplier has a right of last refusal when the category is re-tendered or negotiated.

Rebates & GST

HBT has obtained a private ruling from the ATO regarding the treatment of GST on rebates. The effect of the ruling is :-

  • The ATO considers that the rebates paid by suppliers form part of the normal purchase/supply transaction and as such must be treated as an adjustment.
  • HBT acts as agent on behalf of the member stores by administering the rebates, collecting them and distributing them to the members.
  • The administration rebate that HBT retains is a separate supply by HBT to the members for this administration service.

Trading Compact Terms

These are the terms which we agree will apply to your Deal :-

1. HBT promises that it will :-
  a) promptly deliver the Deal to our members and consistently encourage their support for the same.
  b) promptly advise you of any changes to our membership list and will regularly send to you a current membership list
  c) invite you to attend and sponsor regular meetings we hold for members
  d) work with you in accordance with your reasonable requests to further the use and support of your Deal
  e) promptly remit to the relevant member 100% of any member rebate paid by you to HBT in respect of that member's purchases from you
  f) not disclose  the terms of your Deal to any unauthorised person

 

2 The Supplier promises that it will :-
  a) on first registration of the Deal promptly approach the members and request that they open a trading account
  b) send all invoices and statements promptly to members
  c) promptly deliver all orders with a 100% fill rate or where 100% is not achievable to advise the member placing the order by facsimile within 48 hours of the items which cannot be filled
  d) provide proper representation to HBT members at all times and provide reliable and regular call cycles from the assigned representative
  e) promptly offer all new products to the members on first release
  f) provide a minimum of two months written notice of all price changes to the members and notify HBT
  g) correctly complete and deliver a quarterly Rebate Summary in the form requested by HBT together with payment of the calculated rebate. This report is to include the Members and Administration Rebates and to be delivered to HBT within 35 days of the end of each quarter ending March, June, September and December
  h) where an LTI has been agreed, to report to HBT on the progress towards achievement of the LTI with each quarterly Rebate Summary
  i) at all times honour all Deal terms and periodically communicate to members the availability of any advertising subsidies or other benefits available to members
  j) make available to members all merchandising support which is offered or available
  k) not disclose the terms of your Deal to any unauthorised person

 

3 HBT and the Supplier acknowledge and agree that:-
  a) with regard to rebates and GST, the parties will comply with HBT’s private ruling issues by the ATO.
  b) in special market or historical circumstances the Supplier may choose supply to an individual member on terms more favourable than those specified in the Deal. In such cases the rebates and other terms of the Deal will still apply to those sales
  c) HBT does not guarantee the debts of any members and the Supplier accepts that it is their responsibility to assess the individual credit worthiness of a member
  d) rebates are paid each quarter based on purchases not on payments received by the Supplier. In other words rebates are a pricing matter and not a settlement matter
  e) the Deal continues on a month to month basis past its stated expiry date until superceded by another Deal or until either party gives one months notice of termination
  f) where a Deal applies to a State or Territory it applies to all members located within that geographic area regardless of where the Supplier choses to service a particular member from. The Supplier expressly agrees that it is the Suppliers responsibility and not that of HBT or a member to coordinate the observance of the Deal by any of the Suppliers interstate branches
  g) if you are registered as a preferred supplier then the members in total are required to make not less 70% of their purchases in that product category from you and you will be entitled to a right of last refusal upon any re-tendering of the Deal.

Deal Proposal Form

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