Terms of Agreement
Osavy Products Limited distributorship agreement
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Company information
Distributor levels and pricing
Payment terms
Agreement duration
Territory and rights
Support and obligations
Termination
Renewal
Signatures
1. Company information
Company name: Osavy Products Limited
Product: Osavy Beauty Bar (120g)
Office address: 183 Akowonjo Road, beside Immigration Office, Egbeda, Lagos
Email: osavysoap@gmail.com
2. Distributor levels and pricing
Retail reference is ₦1,000 per bar. Each carton contains 48 bars. Distributor pricing is based on carton volume.
| Distributor type | Minimum cartons | Discount off retail | Wholesale price (per bar) | Carton price (48 bars) | Profit per bar | Privileges |
|---|---|---|---|---|---|---|
| Starter Reseller | 1–19 | 15% | ₦850 | ₦40,800 | ₦150 | Standard distributor pricing |
| Wholesaler | 20–49 | 25% | ₦750 | ₦36,000 | ₦250 | Eligible for tier upgrade targets |
| Mini Distributor | 50–99 | 30% | ₦700 | ₦33,600 | ₦300 | Free delivery within Lagos |
| Main Distributor | 100+ | 35% | ₦650 | ₦31,200 | ₦350 | Additional perks may apply (see upgrade targets) |
Tier upgrade targets
| Distributor tier | Minimum order | Benefits | Target to move up or maintain |
|---|---|---|---|
| Wholesaler | 20–49 cartons | 25% discount | Buy 30 cartons cumulatively in 3 months |
| Mini Distributor | 50–99 cartons | 30% discount + free delivery within Lagos | Maintain 30+ cartons monthly for 3 months |
| Main Distributor | 100+ cartons | 35% discount + additional 5% discount + free 2 cartons + branded materials | Maintain performance for 6 months |
3. Payment terms
- 100% payment before or on supply. No credit allowed.
- Payments are made directly to Osavy Products Limited’s official bank account.
- No credit sales or post-dated payment is allowed.
4. Agreement duration
- This agreement is valid for 6 months from the date of signing.
- Performance reviews shall be conducted quarterly (every 3 months).
- Renewal is based on satisfactory performance and adherence to company policies.
5. Territory and rights
- Distributors purchasing 100 cartons or more may qualify for regional rights.
- Regional exclusivity is subject to consistent sales performance and company review.
- The company reserves the right to withdraw exclusivity if targets are not met.
6. Support and obligations
Company support
- Marketing flyers, product photos, and training.
- Occasional promo materials or price discounts to boost distributor sales.
Distributor obligations
- Uphold Osavy brand image and reputation.
- Sell only original Osavy products obtained directly from the company.
- Maintain pricing integrity (not below ₦1,000 retail).
- Avoid false claims, rebranding, or repackaging.
8. Termination
This agreement may be terminated if the distributor:
- Fails to meet sales targets for two consecutive quarters.
- Engages in brand misconduct or illegal resale.
- Fails to make payment or comply with company policies.
9. Renewal
- Successful distributors may renew their distributorship after 6 months.
- Renewed distributors may qualify for upgraded status or larger territory.