Here’s a Pricing Violation Penalty Matrix specifically for COBI, designed to protect the brand, SRP discipline, and dealer fairness. It is a standalone tool or can be included in the Dealer Handbook / Dealer Agreement.
💰 COBI PRICING VIOLATION PENALTY MATRIX
| Violation Level | Description | Evidence / Detection | Penalty / Sanction | Notes / Corrective Action |
|---|---|---|---|---|
| Minor Violation | Selling at ≤5% below SRP | Customer reports, audit, online check | Written warning; corrective action plan | Dealer required to adjust pricing; confirm compliance within 7 days |
| Moderate Violation | Selling 6–10% below SRP | Multiple reports, sales audit | Temporary suspension of supply (30 days) | Mandatory re-training on SRP compliance; monitoring for next quarter |
| Major Violation | Selling >10% below SRP, repeated violations, or cross-territory undercutting | Verified audit, field investigation, complaint confirmation | Loss of exclusivity; suspension of incentives | Territory review; corrective measures; possible downgrade to non-exclusive |
| Severe / Fraudulent Violation | Deliberate price manipulation, online dumping, or falsification of sales documents | Investigation, evidence of intent | Termination of Dealer Agreement; legal action if warranted | COBI may blacklist dealer from future appointments |
Guidelines & Enforcement Notes
- Detection Methods:
- Dealer self-reporting
- Customer complaints
- Field audits
- Online and market checks
- Escalation:
- Minor violations escalate to moderate if repeated within 3 months
- Moderate violations escalate to major if repeated within 6 months
- Corrective Measures:
- Written acknowledgment from dealer
- Re-training sessions
- Monitoring and reporting for next sales cycle
- Territory Protection:
- Penalties are enforced per dealer territory to prevent unfair competition between neighboring distributors
- Appeal:
- Dealers may appeal within 10 business days of receiving notice; COBI management will review and decide
🌱 Core Principle
“Maintaining SRP protects all dealers, preserves market value, and ensures sustainable growth for farmers and the brand.”
I can now combine this Pricing Violation Matrix with the full Dealer Violation & Sanctions Matrix into a visual, one-page compliance infographic that can be posted in dealer offices, field kits, or included in your Distributor Handbook.
Do you want me to create that visual compliance infographic next?