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GENERAL POINTS
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All P.O.’s must be based on a MOQ of 500 pcs. by style/silhouette. (No less than 150 pcs. per combination).
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After first P.O. our company is expecting at least 2,000 pcs production per month, this means 500 pcs per week.
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The WEEK of delivery from Development and P.O.’s must be accurately approved and given by DEVELOPMENT and PRODUCTION SCHEDULE PLANNING departments.
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Delivery dates of P.O.’s in PRODUCTION must be respected as long as the product is 100% released and approved by DEVELOPMENT.
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On WEDNESDAYS will be sent files “DSR” and “PSR” to the customer, this way will take the control and STATUS of each one of projects.
DSR Development Schedule Report
PSR Production Schedule Report
COSTS AND PRODUCT DEVELOPMENT
1) Cost of PRODUCT DEVELOPMENT is the next way:
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TYPE A (Bags, briefcases, duffles, etc.)
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First Prototype (Code AP) / $150.00 usd (Patterns and physical sample) + PRODUCTION SALE PRICE
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Second Prototype (Code AS) / $125.00 usd (Patterns and physical sample) + PRODUCTION SALE PRICE
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Third Prototype (Code AT) / $100.00 usd (Physical sample) + PRODUCTION SALE PRICE
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TYPE B (Simple bags and/or accesories as wallets, dopp kits, etc.)
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First Prototype (Code BP) / $75.00 usd (Patterns and physical sample) + PRODUCTION SALE PRICE
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Second Prototype (Code BS) / $60.00 usd (Patterns and physical sample) + PRODUCTION SALE PRICE
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Third Prototype (Code BT) / $50.00 usd (Physical sample) + PRODUCTION SALE PRICE
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TYPE C (Accessories as keychains, card cases, luggage tags, etc.)
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First Prototype (Code CP) / $35.00 usd (Patterns and physical sample) + PRODUCTION SALE PRICE
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Second Prototype (Code CS) / $30.00 usd (Patterns and physical sample) + PRODUCTION SALE PRICE
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Third Prototype (Code CT) / $25.00 usd (Physical sample) + PRODUCTION SALE PRICE
d) TYPE D (Only repetition of an existent model)
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Every request of prototype that DOES NOT NEED any changes and is just a REPETITION of an existent model. (Code D30) / PRODUCTION SALE PRICE + 30%
*OBSERVATION: Every development must be invoiced and paid before shipment of samples or according to previous negotiation and revision with Customer.
2) Every development request must be given with the next KIT of information:
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NAME AND CONCEPT OF THE BRAND.
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CONTACT LIST AND POSITION.
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TECHNICAL SHEETS and/or
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PHYSICAL SAMPLE
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SPECS (leather, textile, lining, hardware, zipper, thread, etc.) AND PRODUCT DESCRIPTION.
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AVAILABLE AND/OR ALREADY DEVELOPED MATERIALS and SUPPLIERS.
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TARGET PRICE.
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For manufacture of first prototypes apply the next points: When specs and/or physical samples are DEFINED and all MATERIALS AVAILABLE, delivery time will be 4 weeks.
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When THERE ARE NOT DEVELOPED materials as leathers, linings, zippers, hardware, webbings, etc., delivery time will be 9 weeks.
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NOTE: Every prototype / sample request with minor delivery time as previous mentioned, will have an EXTRA COST. This will be the double of the costs given in point 1, according to the type of sample and prototype number (A, B, C / P, S, T). Also, important to mention that MOQ’s requested by SUPPLIERS (in case these are) must be paid by Customer.
3) All APPROVAL SAMPLES must be SIGNED by the customer since this will be the guide and/or reference for PRODUCTION. Without an Approval Sample by style and combination, can’t be accepted and/or release a P.O. to Production floor.
NOTE: Any change can be requested or changed to product once this is released and delivered to PRODUCTION, these changes must be applied as a new development and in the same way for FUTURE P.O.’s.
4) PRODUCTION COSTS will be sent to Customer by SALES once DEVELOPMENT and COSTS have been finalized with both processes.
5) Every week will be sent a BALANCE SHEET REPORT, where are going to be reflected all the invoices and payments to be made of all SAMPLES PRODUCED IN OUR DEVELOPMENT WORKSHOP.
PRODUCTION
1) Every official P.O. placed by the customer has a maximum deadline of cancelation and/or modification (just quantity of ordered pieces) of no longer than 3 days.
2) Every delay from SUPPLIERS, might affect delivery date. These delays and affectations will be notified by “PSR” file.
3) Every P.O. will be according to the PRICE and APPROVAL RELEASED SAMPLE from DEVELOPMENT, is not allowed any type of changes in PRODUCTION.
4) To generate changes to products in PRODUCTION must be previously notified to DEVELOPMENT dept. and these changes will be applied for FUTURE P.O.’s as a running change.
5) In each P.O. there must be a quality allowance of 5% of seconds, either for construction or materials and these will be invoiced at the 100% of the price.
6) DS grants a limited warranty on exclusively on the manufacturing of finished product of 90 days from shipping date and the product must be brand new, no warranty on used items.
7) PRODUCTION LEAD TIME is 75 - 90 days (according to materials liability from suppliers). If case of a constraint exists, this will be confirmed in “PSR” file indicating new delivery date.
8) PAYMENT TERMS are 50% of the total amount when placing the OFFICIAL P.O. and remaining 50% once PRODUCTION goods are produced, with the second payment the shipment is RELEASED to be shipped to the destination the customer advice. Or by CIT-BANCOMEXT, this is a benefit DS grants to customers and some financial info have to be shared to the cofactor in order to assign a credit line amount and payment terms period.
9) Style’s terms are “EXWORKS”, this means the shipping cost, Logistics, taxes, fees, etc. is Customer responsibility.
The previously info is simply with the objective to keep and maintain the most possible and clear order in the operation STYLE / CUSTOMER.
This way we thank you your support to execute this as close as possible and also, we’d appreciate this document to be returned with your name, signature, company name and date, as approval and agreement of the exposed checkpoints.
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S I N C E R E L Y
S T Y L E M A N U F A C T U R E R S