This is in reply to your recent inquiry concerning our distribution policies. It is very difficult to send you complete information since it is quite complex and there are certain legal restrictions that do not allow us to discuss pricing of various segments of our business. I can tell you that Lederle is a direct selling company and also distributes through the wholesaler. Most of our business is directly through retail pharmacists. Our policy is to offer the same purchasing privileges to retail pharmacists and to private hospitals on an equal basis. The same applies to chain store organizations. I am attaching a frontispiece which outlines our direct selling policy. We do not have any minimum size orders nor do we have an annual volume requirement for direct accounts. Thank you for your interest in Lederle. Sincerely, Wan fwell Kemes Maxwell James Manager, Trade Relations. MJ:rr All orders are subject to acceptance by Lederle at its Home Office but should be sent to the appropriate Distribution Center to expedite service. Lederle will accept orders for direct shipment to customers in the State of Hawaii only if such orders amount to at least $50.00 before application of any earned discounts. This minimum order limitation does not apply to sales to U.S. Government installations. Shipments to Hawaiian customers, with the exception of emergency orders, shall be made only on Monday or the first working day of each calendar week. Merchandise is shipped on a delivered basis. When the method of transportation is selected by us, shipments will be made without charge for transportation. If a more expensive method of transportation is requested, such as air mail or air express, the difference in cost will be charged to the customer. PRICES Price changes take immediate effect. The prices shown in this Price List, and changes thereto, were in effect at the time of publication but are submitted without offer and are subject to change without notice. Unfilled current orders and back orders will be invoiced at the price prevailing at the time shipment is made. Quantity prices published for units of products sold in shipping carton quantities apply only to exact multiples of the noted shipping carton quantities. Prices are subject to all taxes, excises or other charges levied by any government (national, state or local) upon the sale, consumption or use of the products listed herein. Inquiries for Price Quotations on larger quantities than those shown in this List are solicited. LEDERLE PURCHASE PLAN Retailers and hosptials (excluding federal, state, county and city institutions) are sold under the provisions of the Lederle Purchase Plan and are invoiced at the prices entitled Price to Direct Retailer. shown in the column of this price list which On orders of $50.00 or more at the Price to Direct Retailer, excluding those listings bearing symbols "Y" and "Z", the following Lederle Purchase Plan discounts are allowed: 7.5% on orders of $50.00 or more and less than $100.00. The symbol "Y", is a qualification which applies to listed prices for certain products and to prices which may be quoted on large quantities which are not listed. While these Lederle Purchase Plan discounts are not allowed on items qualified by the symbol "Y", such items will be included in determining whether or not the total order equals or exceeds $50.00 or $100.00. Items bearing the symbol "Z" are not eligible for Lederle Purchase Plan consideration for discounts or for contributing to Lederle Purchase Plan volume. Under the provisions of the Lederle Purchase Plan, Lederle may ship reasonable quantities of a new product to Lederle Purchase Plan accounts without prior authorization. Maximum discounts are applied to these "automatic shipments". RETURNS Lederle will consider all justifiable requests for the return for credit of merchandise purchased directly from Lederle. All returns of items eligible for Lederle Purchase Plan discount will have 15% Lederle Purchase Plan discount deducted from the credit. Rev. September 1, 1965 Partial returns of quantity purchases, when otherwise acceptable for return, are credited at the original purchase price BUT the quantity retained or used by the customer will be rebilled at that price which would apply if the quantity retained or used were being priced on a new order. In general, returns will be governed by the limitations set forth on the following pages: Not Returnable 1. Merchandise expressly sold on a nonreturnable basis or on special quantity price quotations. 2. Merchandise returned by other than the original purchaser. (Wholesalers do NOT enter into the processing of returns by DIRECT Retail accounts). 3. Merchandise with broken seals or in opened packages or from which smaller individual units have been removed. 4. Merchandise which has been involved in a fire sale, sacrifice sale or bankruptcy sale. 5. Merchandise that has been deleted from the Price List for a period of five years or more. 6. Dated products which are outdated six months beyond the Expiration Date noted on the package. Returnable With the exceptions noted above, and subject to our Home Office approval, products may be returned (transportation charges prepaid) and will be accepted for credit upon the understanding that as to merchandise showing damage by fire, water or smoke or otherwise deemed by us unfit for sale, credit will be limited to salvage value, if any. Lederle reserves the right to destroy such merchandise, without recourse. Prior to shipment, a signed, itemized list and description of the products to be returned must be submitted, on our "Returned Goods Memorandum" form, to a local representative of Lederle, and his signature obtained. All merchandise to be returned, unless otherwise directed, should be shipped to the Distribution Center through which it was purchased. SHORTAGE OR DAMAGE IN SHIPMENT We use greatest care possible in packing our shipments. Prompt notification should be given of any damage or loss occurring in transit. TERMS Unless specifically excepted, a 2% cash discount will be allowed on payments of calendar month statements which are made by the 15th of the following month. NEW ACCOUNTS Any retail pharmacy, desiring to establish a direct acount with Lederle should forward the following to the nearest Lederle Distribution Center as listed in the forepart of this Price List: a) A minimum opening order of $100.00 at the prices shown in the Price to Direct Retailer column of his Price List. b) The name and address of the bank which may be used as a credit reference. This opening order will be processed, subject to Lederle Credit and Sales Departments' approvals, as promptly as possibly and will, as with subsequent orders be subject to the policy outlined above under DIRECT ACCOUNTS. THIS LIST SUPERSEDES ALL PREVIOUS LISTS. 4 Rev. September 1, 1965 |