prime vendor agreement

[duomo96]

have been investigating a prime vendor agreement-based on gross sales of approximately 1,000,000 per year (gross) with a food cost of 32% and paper at 6% what could i expect to be able to negotiate? and what is the standard length of contract i would be expected to sign?

 

[royster13]

So are you talking about purchases of 380,000 per year?..

The biggest flaw I see in agreement like this is that they are usually pegged at so much over cost but cost can be manipulated by a vendor by getting rebates, shipping allowances, slotting fees, etc. that are not reflected in what they show you as their costs…

By the way there is a wealth of information if you Google it…