Common use of DISCOUNT TO MEET COMPETITIVELY PRICED ORDERS Clause in Contracts

DISCOUNT TO MEET COMPETITIVELY PRICED ORDERS. Seco has established its regular discounts to Distributors in order to give Distributors a compet- itive position under most circumstances. However, if a Distributor provides verification information to Seco justifying the need for additional discount support in order to meet a specific competitive offer to an end-user customer from a non-Seco product provider, Seco may, in its discretion, pro- vide additional temporary discount support to the Seco Distributor in order to meet the competitive offer. The Competitive offer must be submitted to the Distributor’s local Seco Technical Specialist. Upon approval, Seco will meet the competitive offer with a 15% discount to the Distributor. The intent of this procedure is to support the Distributor in meeting a specific lower price offer by a competitive seller on a competitive prod- uct. Discounts received are intended to be used to meet the specific competitive situation. Subsequent orders require separate approval. A 1% reduction in the Distributor’s discount will be applied to meet comp discounts for Distributors who fail to meet the requirements necessary to qualify for the prompt pay functional discount on their orders for standard carbide inserts. (see 1.1b)