Diplomat wines ln the meeting our executive was told that first the company is required to pay Rs. 30000 approx to the association for launch of one product. Moreover, the retail margin on our products was fixed at 12% along with scheme for launch which basically means giving 2 bottles free to the retailer on purchase of 5 bottles These terms were too heavy for the company and severely dented our profits. The company pursued the association for many days for reducing the retail margin to 10%, however, they did not relent and ultimately forced us to agree to their terms The association is very shrewd and probably understands the illegality in their conduct. Thus, the association members/officer bearers/key persons do not communicate the illegal things on email or in writing They simply ask the executive to meet in their office, where they verbally tell their demands. They also provided a sample offer letter from some other company, and asked us to submit an offer on the dictated terms. as if we proposed the terms. Thereafter, they gave us an acceptance letter which is sort of an NOC which is seen by their member retailers before taking our products. There may be some incriminating whatsapp chats between our company executive and the key person in the association, which we will fetch and submit with appropriate certificate. The company paid Rs 30000 approx as launch fee to the Progressive association The email shown to me is what our company has offered to the association for selling our products. It includes the retail margin and the free scheme Actually, as informed to me by the sales executive concerned. this offer was rejected by the association person and the company was compelled to send another offer with retail margin 12% + free scheme. ln the matter, another member named Mr. James was also involved from the association side.
