Minimum Purchase Commitment

Below is a clear, enforceable Minimum Purchase Commitment Schedule for Crown Organic Biofertilizers Inc. (COBI).
This is designed to plug directly into your Dealer Agreement / Territory Exclusivity Rider and to be fair, scalable, and performance-based.

📊 COBI MINIMUM PURCHASE COMMITMENT SCHEDULE

Crown Organic Biofertilizers Inc. (COBI)
For Authorized & Exclusive Distributors / Dealers

1. POLICY PURPOSE

The Minimum Purchase Commitment (MPC) ensures that:

  • Territory exclusivity is awarded only to active, serious partners
  • Markets are properly developed and supported
  • Price discipline and brand integrity are maintained

Commitments are reviewed periodically and may be adjusted based on market maturity.

2. TERRITORY-BASED COMMITMENT LEVELS

A. Barangay / Cluster Dealer (Non-Exclusive or Limited Exclusive)

Commitment PeriodMinimum Purchase
Monthly₱25,000 – ₱50,000
Quarterly₱75,000 – ₱150,000

Typical Use:
Small agri-supply stores, pilot dealers, startup territories

B. Municipal / City Exclusive Dealer

Commitment PeriodMinimum Purchase
Monthly₱35,000 – ₱75,000
Quarterly₱100,000 – ₱250,000

Typical Use:
City agri-supplies, municipal distributors, active LGU-linked sellers

C. Provincial Exclusive Distributor

Commitment PeriodMinimum Purchase
Quarterly₱300,000 – ₱500,000
Annual₱1.2M – ₱2.0M

Typical Use:
Provincial distributors, cooperatives, plantation service providers

D. Regional / Master Distributor

Commitment PeriodMinimum Purchase
Quarterly₱750,000 – ₱1.5M
Annual₱3.0M – ₱6.0M

Typical Use:
Multi-province operators, national agri-input players

3. INITIAL STOCKING REQUIREMENT

Upon appointment, the distributor/dealer shall make an initial stocking order equivalent to:

  • 1× Monthly Commitment (Barangay / Municipal)
  • 1× Quarterly Commitment (Provincial / Regional)

This ensures product availability and proper market entry.

4. PRODUCT MIX REQUIREMENT (ANTI-CHERRY-PICKING)

To maintain system selling, at least 3 COBI product lines must be included per commitment cycle:

  • BioGrow™ (mandatory base product)
  • Any two (2) of the following:
    • MycoBoost™
    • VitaSoil™
    • EcoZyme™
    • BioKelp™

🧩 This promotes bundled sales and higher farm impact.

5. PERFORMANCE REVIEW & ADJUSTMENT

Review Frequency

  • Quarterly for Exclusive Distributors
  • Semi-annual for Non-Exclusive Dealers

Performance Metrics

  • Purchase volume vs. commitment
  • Market activity (demos, promotions)
  • Pricing & brand compliance

6. GRACE PERIOD & REMEDIES

  • First shortfall: Written notice + 30-day corrective period
  • Second consecutive shortfall:
    • Downgrade of exclusivity OR
    • Territory reduction
  • Persistent non-compliance:
    • Termination of exclusivity or dealer status

7. INCENTIVES FOR OVER-PERFORMANCE

Distributors exceeding commitments may qualify for:

  • Volume rebates
  • Priority supply allocation
  • Territory expansion
  • Marketing & demo support
  • Preferential pricing on new product launches

8. EXCEPTIONS

COBI may temporarily relax commitments for:

  • New territories (first 3–6 months)
  • Force majeure events
  • Government or institutional procurement cycles

All exceptions must be approved in writing.

9. INCORPORATION

This Schedule forms an integral part of the Dealer Agreement and/or Territory Exclusivity Rider.

🛡️ CORE PRINCIPLE

Territory protection follows performance. Commitment sustains exclusivity.

🔧 NEXT DOCUMENTS I CAN PREPARE

✅ Exclusivity Rider (Annex A – ready to sign)
✅ Distributor Application & Evaluation Form
✅ Quarterly Performance Scorecard
✅ Volume Rebate Policy
✅ Territory Expansion Criteria

Tell me which one you want next and I’ll finalize it.