Partner Reseller Pricing 251109

Summary

The standard pricing multiplier is 1 / 0.6 = 1.67 (rounded up from 1.6666). This means there is a 33% margin difference between the at-cost price and the selling price.
Subcon-Partner Pricing: Defines how AA and Comfac split profits (60% Comfac / 40% AA) and handle material and labor costs, including warranty and support.
Comfac Partner-Level-1 (P1) Pricing: Used when Comfac sells technology or systems (e.g., BMS) to ESCO, Cornersteel, or other strategic partners at 15% markup based on internal 1.67 multiplier.
Reseller Agreement: Applies to approved resellers who get a 25% discount on Comfac’s 1.67 pricing, with Comfac keeping 15.15% net margin.
ESCO Note: ESCO manages warranty and planned maintenance. Future coordination required for pricing and coverage.

Definition of Terms

At-Cost Price: The total direct cost of materials and labor before applying any margin or multiplier.
Multiplier (1.67): Derived from 1 / 0.6, used to calculate selling price from cost, reflecting a 33% margin over at-cost.
Margin: The percentage difference between at-cost and selling price; typically 33% for Comfac pricing models.
Buffer: Additional 20% added to labor and material estimates to cover unforeseen costs or contingencies.
Warranty Period: One-year coverage included in the Subcon-Partner pricing for post-project support.
PR-PO System: Comfac’s internal Purchase Request–Purchase Order tracking in ERPNext used for recording materials and project costs.

1. Subcon-Partner Pricing (AA and Comfac)

This refers to AA/Subcon-Partner pricing for Labor and Materials, inclusive of Support and Warranty for one year.

1.1 Materials and labor estimates are prepared by RJ and Andrei, then submitted to Jun and Jonathan for pricing review and approval.

1.1.1 Materials can have a margin calculated as Materials / 0.6 (or 166.66%), supported by a detailed BOM and breakdown.
1.1.2 Materials and Labor must include a 20% buffer and Warranty allowance.

1.2 Profit is shared 60% (Comfac) and 40% (AA) after costs.

1.2.1 Comfac covers labor (as RJ and Andrei’s salaries), so AA’s remittance is 40% profit + material costs.
1.2.2 Example:
- Project Value: ₱360,000
- Cost: ₱110,000 (₱80,000 materials + ₱50,000 labor)
- Net Profit: ₱250,000 → Comfac ₱150,000 (60%) / AA ₱100,000 (40%)
- Comfac remits ₱100,000 (profit) + ₱80,000 (materials) to AA.

1.3 Standard labor baseline: ₱1,500 per man-day.

1.4 Material procurement and cost control managed by AA, tracked through Comfac PR-PO system in ERPNext.

2. Comfac Partner-Level-1 Pricing (P1 Pricing)

This applies to Comfac selling technology or systems (e.g., BMS) to ESCO, Cornersteel, or other strategic partners.

2.1 P1 pricing is set at 15% markup for sister companies (ESCO, Cornersteel), assuming internal At-Cost / 0.6 or ×1.67 pricing.

2.2 Comfac’s share under P1 pricing equals 60% of the total proposal/sales-invoice value. - If P1 lowers the client price, Comfac still gets the quoted 60% share. - If P1 increases the price, Comfac gets 59.88% of the final collected price, or whichever results in the higher amount due to Comfac.

2.3 Maximum discount P1 can offer clients: 20%. - This changes the multiplier from 1.67 → 1.336, giving P1 an 18.9% margin after paying Comfac. - Comfac retains 15% gross margin, split as 9% Comfac / 6% Subcon Partner + Materials.

3. Reseller Agreement

For partners under a formal Comfac Reseller Agreement, Comfac approves and co-signs the final pricing to ensure transparency.

3.1 Comfac’s standard pricing: 1.67 × Total Cost. - Example: ₱1M cost → ₱1.67M selling price. - ₱266,666 + materials remitted to Partner Contractor.

3.2 Resellers under agreement receive 25% discount off Comfac’s selling price. - Comfac earns 1.2525× cost, keeping 15.15% net margin.

3.3 Resellers can set client pricing and apply discounts, but Comfac always takes 75% of the final quoted or invoiced price, or whichever amount is higher between the reseller’s client price or Comfac’s quoted price.

3.4 Any deviation or unapproved pricing nullifies the agreement; Comfac will not produce or deliver products or services under those terms.

4. Note on ESCO

ESCO is designated as the planned maintenance and warranty provider for clients.

Future discussions will define how ESCO prices preventive maintenance and full support over a 1-year warranty period.
Responsibility and pricing for warranty coverage must be coordinated with ESCO’s team and integrated into Comfac’s pricing models.