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Office Furniture USA GSA Program

Office Furniture USA GSA Program. June 2010. Points to be covered OFUSA and Manufacturers’ Contracts Marketing to the GSA Customer Catalog layout Items and manufacturers not on contract Dealer’s role and responsibility Invoicing GSA payments Dealer payment terms

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Office Furniture USA GSA Program

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  1. Office Furniture USAGSA Program June 2010

  2. Points to be covered OFUSA and Manufacturers’ Contracts Marketing to the GSA Customer Catalog layout Items and manufacturers not on contract Dealer’s role and responsibility Invoicing GSA payments Dealer payment terms OFUSA’s role Contract benefits

  3. The OFUSA GSA Contract This contract is the OFUSA Program being sold at pre- established terms to the Government Participating GSA dealers handle GSA sales in same fashion as commercial sales OFUSA is the contract holder (dealers are OFUSA) Stand alone contract separate from manufacturers directly held contracts

  4. Manufacturer Contracts vs OFUSA’s Contract MFG A MFG B MFG C MFG D Contract # Discount Terms Dealer Payment Order Process Contract # Discount Terms Dealer Payment Order Process Contract # Discount Terms Dealer Payment Order Process Contract # Discount Terms Dealer Payment Order Process Our contract is dependent on the manufacturers’ contracts. Items have to be in our catalog AND on a manufacturer’s contract to be on our contract. Our contract is separate from the manufacturers’ contracts Contract # Discount Terms Dealer Payment Order Process

  5. AIS ART CLA DAR DMI HPC INW KFI LAC LAS LEG MLN RIT UNC VIR The OFUSA catalog on contract 15 manufacturers and 3200 sku’sare included on the OFUSA GSA contract

  6. CONTRACT DETAIL GSA Price: 54% off list dock delivered (GSA’s price includes delivery; dealer can’t charge) OFUSA Dealer Margin: 20%* + installation + design * Due to rounding actual GP is fractionally below 20% (19._ _%)

  7. Marketing to the GSA customer Quick-ship - 14 day delivery ARO (after receipt of order) Consolidated - Multiple manufacturers under one contract with one discount Convenient - One dealer to service account - One catalog wide selection of product

  8. QUICK SHIP Delivery terms of 14 days (quick ship quantities) GSA given the same maximum quantities as standard OFUSA maximums Guaranteed delivery in 90 days

  9. CONSOLIDATED • 1 purchase order for multiple lines • Dealer delivers order complete • One discount for product on contract

  10. CONVENIENCE • Simplifies procurement process - Fill multiple needs from one source - Provide consistent terms for all products - Reduce administrative processes • Dealer service

  11. GSA Contract Catalog We have a specifically customized catalog as our GSA Contract Catalog. GSA-approved product from the commercial catalog is included, with GSA pricing for all items. The catalog also has a customized front and inside front cover.

  12. OFUSA GSA Contract Terms The terms of our GSA contract are summarized on the inside front cover of the GSA catalog. These points answer most GSA customers’ questions about technical aspects of our contract.

  13. GSA Contract Items List prices are printed for GSA items & 54% off is calculated

  14. DEFINITION: a) Any item available through the OFUSA program that is NOT included in our GSA contract b) Any item in the commercial catalog that is not in the GSA catalog, and any “un-cataloged” item from the manufacturer binder-wide offering _______ If an item is not in our GSA catalog, it cannot possibly be included in our contract Items Not on Contract (“NOC”)

  15. “NOC” Items “NOC” items can be included in your order placed through the OFUSA System, just quoted to the customer as “open market” - If allowed by their own purchasing rules, customers can put On-contract and NOC items on ONE purchase order. YOU can enter all OFUSA product on the same order in the OFUSA system. - Not contracted at 54% off; therefore increase your overall GP on NOC items!

  16. Dealer’s Role Catalog Commitment Minimum order 250 at $4.25 = $1,062.50 About $5,000 in sales pays for your GSA investment

  17. Dealer’s Responsibility Deliver to customer within the terms of the contract Retain records of GSA purchase orders

  18. Dealer’s Responsibility Invoicing: - Dealer invoices GSA as ‘OFUSA City Name’ - The remit to address is: Office Furniture USA 273 Cahaba Valley Pkwy Pelham, AL 35124 Attn: GSA

  19. Dealer Payments: OFUSA will receive payments from GSA. Our accounting department will determine the selling dealer and immediately forward the payment (same day turnaround) Credit card purchases: Processed by dealer Electronic Funds Transfer: Available Payment Options

  20. Payment Terms Payment Terms: Credit / Purchase card payments encouraged and accepted for immediate payment! (processed by dealer) Terms to GSA customer: Net 30 if not paid by credit or purchase card Dealer payment terms: Standard OFUSA payment terms

  21. OFUSA’s Role • Pay Industrial Funding Fee (.75%) • Provide and maintain the GSA website • Manage and maintain the contract • Generate leads from GSA Advantage! and eBuy

  22. Our GSA.com website will list participating dealers (dealer locator) • OFUSA will refer inquiries according to OFUSA territories (if participating dealer) • OFUSA will alternate referrals in dual markets with participating GSA dealers

  23. GSA Contract Benefits Higher margins Private contract Ordering simplicity Credit card payment opportunity Selling options No intermarket fees Differentiate your dealership

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