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POLICIES AND PROCEDURES
EMI CMG Distribution Christian Retail Market Policies and Procedures
Effective January 1, 2008
At EMI CMG Distribution, it is always our goal to give you the best service in the industry. We continually seek to address the needs of our retailers and thus make it easier for you to do business with us. One tool that helps accomplish these objectives is this polices and procedures document. It details in one place the policies you need to know as you work with EMI CMG Distribution to grow your sales. We believe you will find it to be comprehensive, and it will serve as a good reference tool for your store. As always if you have any questions or concerns, feel free to call or e-mail us.
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STREET DATE POLICY
It is the intent of EMI CMG Distribtuion to support the music industry's "street date" policy, where new releases have a schedule date in which they are available for consumer purchase. This is to ensure that all retailers have an equal sales opportunity in their local area.
All new release cassettes, compact discs, videos and interactive games from EMI CMG Distribution are assigned a street date. The shipments from our distribution center in Jacksonville, IL are scheduleD so that all retailers nationwide receive their product approximately 1-2 days prior to street date.
While the product is delivered early to the retailer for receiving purposes, it is not to be offered to the consumer prior to the published street date.
To support this policy, EMI CMG Distribution will take the following actions upon notification that a retailer has broken street date:
- A representative from EMI CMG Distribution will contact the owner/manager of the retail store to discuss the street date policy. The goal of this contract will be to determine if the account is aware of the policy and if they are in violation.
- If an account refuses to abide by the policy, or breaks street date a second time, future new release shpments will be shpped to the account on the street date. This procedure will continue for two months, thus preventing the account from selling the product early.
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PAYMENTS
TERMS
Standard Terms: . . . . . . . . . . . . . . . . . . . . 1% 10, NET 60 Invoice
Initial Order (IO) Terms: . . . . . . . . . . . . . . 1.5% 10, NET 75 Invoice*
*Products ordered prior to street date
PAYMENT
Open Account credit payment terms are available to qualifying customers. The terms are based on ship date to offer consistent dating on each shipment, regardless of when it is received by the customer during a month. Payment should be mailed to be received by EMI CMG by the due date. If the customer desires to pay once a month, payment for all invoices due in a month should be mailed to be received by the 15th of that month. Invoices paid within 10 days of the invoice date qualify for the early payment discount that should be deducted by the customer at the time of payment (see terms above). A service charge of 1.5% per month, or the maximum allowed under applicable law, whichever is less, is assessed on balances not paid within these terms. Payment terms of EZFastPay, COD or Cash in Advance are available to non-credit-qualifying customers or as a matter of customer choice.
INVOICING
The invoice for each shipment will be included with the shipment. With few exceptions, all purchases are based on a discount off the Manufacturers Suggested Retail Price (MSRP).
SHIPPING
F.O.B. EMI CMG Distribution Center
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CREDIT CARD PAYMENTS
Visa and MasterCard payment is accepted for EZFastPay and Cash In Advance orders. With EZFastPay, a weekly billing summary is sent to you by email early the week after shipment and your payment is automatically processed at the end of the week. All EZFastPay orders earn an early pay discount with EZFastPay ACH offering the highest possible discount. Card payments are limited to $20,000 annually. Contact Customer Services and Sales Support for more information and to enroll.
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INTERNATIONAL DISTRIBUTION
In an effort to efficiently service Christian Retail accounts located outside of the United States, EMI Christian Music Group Distribution has established an international department to handle all international needs. This department contracts with international distributors in various countries worldwide that service retail as well as media in their respective countries.
The International Department does not directly service retail and media outlets outside of the United States.
It should also be noted that our sales to customers in the United States are not for resale outside of the United States. Such sales shall constitute a violation of our policies and EMI CMG may, in the exercise of its sole discretion, stop selling some or all products to you or impose such other penalties as it deems appropriate. We will not sign NAFTA forms that are sent to us.
Contact our International Department for international distribution inquiries at 615-371-6800 or fax to 615-371-6555.
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DEMOS
Demos come stickered with a "Legal Notice License," which contains the terms under which EMI CMG licenses the Demos to its customers. The License states "This product is licensed for promotional use only, and is not for sale. This CD cannot be transferred without the consent of the record company. Use or retention of this CD signifies acceptance of this license." Demonstration copies are available for the majority of EMI CMG titles upon initial release only, however some titles do not have demonstration copies available. Demonstration copies are not available for distributor and e-tailer accounts. Demo fees, when available are as follows:
All single disk audio (CD) and cassette product: $2.50
All single disk DVD and Video product: $3.00
All 2 disk CD sets, 2 disk DVD sets, and CD-DVD combo packs: $3.00
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RETURNS
You may return overstock product 75 days after Release Date (which is normally 12 days before Street Date) and as long as the title remains active in the EMI CMG system. Please note:
- All overstock returns are on an exchange basis only and must be used to offset future purchases.
- All return authorization numbers are valid for 75 Days after the date issued. A new return request must be submitted once an RA number has expired.
Requesting A Return Authorization
Procedures for requesting return authorization for cassettes, compact discs, videos, DVD’s, interactive games, books, specialty items and printed music are as follows:
2-Day Online Process: Enter your overstock return request online and receive a Return Authorization number within 2 business days via e-mail. Entering the return online gives you instant notification of non-returnable products (i.e. Out of Print or deleted titles, merchandising items, etc.) Click to Return Request Online NOTE: All on-line return correspondence comes from distribution@emicmg.com. Please add this address to your e-mail acceptance list to avoid blocked e-mail confirmations or having them go into your spam folder.
Standard Process: Fax or e-mail the list of titles, UPC numbers and quantities you wish to return. Include account number and return fax number on all requests. Subject to the return complying with EMI CMG’s policies, you will receive a Return Authorization number within approximately 4 business days (or longer during peak seasonal selling periods.)
Return Policies
The Return Authorization number must be written on all packages to be returned and send product prepaid to:
EMI CMG Distribution Group, 400 Capitol Way, Jacksonville, IL 62650 If returning more than one box, please mark accordingly, (i.e 1 of 3, 2 of 3, etc). Product will not be accepted without a Return Authorization Number clearly noted on ALL packages. All returns must be shipped to the Distribution Center in Illinois. Any product shipped freight collect cannot be accepted and will be returned to the shipper (freight charges will not be reimbursed). EMI CMG cannot be responsible for packages lost in transit from the store to the Distribution Center. It is recommended thatpackages be insured.
- All inquiries regarding returns must be directed to the EMI CMG Customer Services and Sales Support Department. Please have the account Return Authorization available and refer to the authorization number for any questions.
- Any credit balance resulting from exchange of product may ONLY be used to offset FUTURE PURCHASES. Returns may only be deducted after the customer receives a credit memo for the return; deductions prior to the customer’s receipt of a credit memo will be considered a past due item and may be subject to additional processing charges.
- EMI CMG distributes advance notification of all titles to be deleted. Merchandise deleted will not be authorized for return beyond the date set forth in the advance notification. Any deleted product received after the stated date will be discarded and no credit will be issued. To ensure you do not return any deleted titles, utilize our on-line return request option which confirms the return status of each product.
- Only products purchased from EMI CMG bearing EMI CMG catalog numbers are returnable. No other products will be accepted.
- The following products are non-returnable: demos, special video, cassette or compact disc samplers, merchandising aids and sample sets. Also non-returnable are cassettes, compact discs, video and all other products in which the seal is broken or is returned without original shrink wrap. This EXCLUDES defective products.
Error in Shipment/Speedy Form
If for any reason there is a problem with a shipment (i.e. shipping errors), you may request action immediately by filling out an EMI CMG SPEEDY form. The SPEEDY FORM is available at (link to form). The SPEEDY form is NOT intended for overstock product. Any overstock product returned with this form will be charged a 25% fee.
Affix the return label provided on the SPEEDY Form to the outside of the return package. If the label is missing, you can send your return to the following address: EMI CMG Distribution Center, Attn: Returns, 400 Capitol Way, Jacksonville, IL 62650.
Return the SPEEDY Form along with the mis-shipped or damaged goods to EMI CMG Distribution Center. All product returns must be shipped to the EMI CMG Distribution Center in Jacksonville, IL. If there is an error in shipment or damaged goods, EMI CMG will credit the customer’s account in full for merchandise and freight. Errors in shipment, damaged or defective merchandise returns may not be mixed with overstock returns and must be shipped in separate containers.
Defective Returns
For defective product requests or product damaged in shipping under $100 retail value, call Customer Services and Sales Support at 800.877.4443 to request a credit and re-order of the defective product. Defective product or products damaged in shipping, which value $100 or more must be sent to the Jacksonville facility in a container labeled with a EMI CMG SPEEDY FORM label. All defective/damaged product will be credited.
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INSTORE EVENTS
EMI CMG encourages retailers to hold in-store events with artists, for holiday promotions and street date events by supporting these events with product specials, cooperative advertising, merchandising and more. Contact your Sales and Marketing Representative for more details on how EMI CMG Distribution can support your in-store events.
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COUPON PROGRAM
Coupons for EMI CMG distributed product are circulated into the market via multiple channels including catalogs, postcards, flyers at concerts, web coupons and application directly to the product. The coupon value for the retailer is indicated on the back of each “dollars off” coupon (i.e. redeem as ONE EMI CMG Distribution frequent buyer coupon).
Retailers must retain coupons and redeem them with a sales representative upon a visit to the store, or they may be mailed to EMI CMG with a replacement order. EMI CMG is not responsible for packages lost in transit from the store. It is recommended that the coupon package be insured.
There is a $0.75 exchange fee for each cassette and $1.25 exchange fee for each CD redeemed with EMI CMG Distribution.
Coupon Orders will be shipped free freight.
An invoice showing all products shipped and the exchange fees involved will be included with the shipment. NOTE: All coupon orders will backorder products if an item ordered is not in stock, even if account is normally set up to cancel backorders.
PLEASE staple coupons in sets of 5 or 6 to correspond with each order.
The following products may NOT be redeemed with coupons:
- Products not yet 75 days past street date
- Gaither Box Sets
- Songbooks, Music Video, Theatrical Video, Interactive Games and Computer Software
- Troubadour For The Lord, Walt Disney Home Entertainment, Walt Disney Records, Safekeeper, Third Day Games and Cloud 9 Games.
**Note: Some DVD and video product may be redeemable for coupons as part of a pre-approved, targeted promotion initiated by the studio or label. These are handled on a case by case basis with specific instructions on the redemption process and quantites.
Redemption quantities for Frequent Buyer Coupons are as follows:
- $6.98 to $11.97 list 1 free with 5 coupons
- $11.98 to $17.97 list 1 free with 6 coupons
- $17.98 to $24.97 list 1 free with 7 coupons
- 24.98 and up list 1 free with 8 coupons
Coupons have a cash value of 1/20 of a cent and CANNOT be redeemed for CREDIT. Coupons can be used for REPLACEMENT ORDERS ONLY.
RETAILER: Redemption of all EMI CMG Distribution Group coupons must be in conjunction with standard EMI CMG redemption policies, provided all coupons are presented to the retailer by a consumer purchasing product with the coupon.
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JUST IN TIME & EDI
EMI CMG Distribution offers same day shipping throughout the continental U.S. on orders received electronically by 10:00 am CST. We also offer guaranteed 3-Day Delivery on EDI orders to accounts outside the 2-Day delivery zone of our distrbution center in Jacksonville, IL. In areas where 3-Day Delivery is not available, specifically Alaska and Hawaii, EDI orders receive 2-Day Delivery. EDI orders by be transmitted via Pub-Net or sent via direct dial (IRT, IBID or Bookstore Manager).
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INITIAL ORDER PLUS (IO+)
New release product orders placed prior to STREET DATE receive your account's daily discount, 75 Day Billing from release date, FREE FREIGHT and no restock fees on returns. Customized projections are generated for active accounts based on 60 day scans for that artist/brand's previous release. This scan data is then factored in with the historical sales of that artist/brand (or the closest artist/brand) and the history of net purchases of these product(s) by that store(s). This provides each account with the customized order quantity recommended for their store(s).
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