The typical cost of a free standing, 20 arm area rug rack is $850 to $900 depending on the design. Alliyah Rugs will provide the rug rack free of charge to the retailer (the retailer is responsible for freight from Dalton, GA to their store). To qualify for the program the dealer will:
- 1. Qualify for credit terms and have appropriate customer information on file with Alliyah Rugs
- 2. Place a minimum opening order of $6,000. Customer is getting Approximately 61 Rugs in USD 6000.00. That's a marvelous value.
- 3. Payment terms will be made in 2 parts 50% in 30 Days another 50% in another 30 Days.
- 4. AR, wants to secure 10 Arms on the rack for One year, which mean our product will be on those arms only.
- 5. If a customer does not want to meet our order requirement then they can purchase the rack. Price for the rack and terms for delivery will be the same which are mentioned above.
- 6. If it's a multiple store chain then minimum will be there for a rack for all the stores.
- 7. VALUE: Our rack program give dealer 46 rugs in 5x8 which is awesome value.
It will be your responsibility as the sales representative to make regular visits to the account to ensure that the rugs are properly displayed and that Alliyah Rugs are on the rack. A "rack chart" outlining the rugs that are purchased and their placement location on the rack will be very helpful to you when reviewing the dealer's inventory and recommending additional order quantities during your sales calls.
This type of program, while fairly common in the past, has been eliminated in most instances due to the initial costs for the supplier. We feel this is the right time to "partner" with the retailer to help them develop a rug presence in their trading area. The perceived value of Alliyah's product line isunmatched, and your dealer's can confidently sell this value to their customer's without the fear of being undersold by a "better deal".
The rack program is just the first step that Alliyah Rugs is taking that will enhance your dealer's ability to increase their net margins by selling area rugs. New programs are in development and will be introduced to you and your dealer's shortly.