GUIDELINES FOR BUYERS
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Why would local stove distributors and retailers ("Buyers") want to participate in The Stove Auction?
(1) The Stove Auction provides on a frequent basis a range of high quality stove technologies that can be purchased in small to large quantities at competitive prices; (2) The Stove Auction provides a cash incentive to Buyers for each stove they sell to an end-consumer which can later be verified by a third-party auditor. What kind of auction is The Stove Auction? The Stove Auction is considered a "multi-unit ascending pay-as-bid" auction:
Are there fees for buying stoves at The Stove Auction? The Stove Auction chargers a Buyer's Premium and VAT on the Buyer's Premium in addition to the winning bid amount ("Hammer Price"). For the latest Buyer's Premium schedule, see Buyer's Premium Schedule. For illustrative purposes, the Buyer's Premium is 5% of the the winning bid amount for one stove, e.g. US$30.00. The Buyer's Premium then equates to US$1.50. Ten percent (10%) VAT is charged to the Buyer's Premium equal to US$0.15 in this example. Therefore, the total amount that the Buyer will need to pay for that one stove is US$31.65. What types of stoves will be sold at The Stove Auction? Stoves must be considered a “gasifier” stove, either natural draft or fan/forced-air. Please see Stove Selection Criteria page for further information. How can I find out what specific stove models will be for sale? Bidders can (1) browse our on-line Catalogue of Products from your computer or mobile device to view the specific stove models available for auction. Each specific stove model and its available quantity at the auction is referred to as a "Lot"; (2) visit our pre-sale exhibitions at The Stove Auction warehouse. Visitation is by appointment only. The Stove Auction Office and Warehouse contact information can found on the Contacts webpage; and (3) register to bid to receive e-mail or SMS alerts so that you never miss an auction. How do I register to bid? Prospective Bidders can register in person or on-line on a rolling basis. Register in Person: Prospective Bidders can register in person at the The Stove Auction office location by appointment only. Register On-line: Prospective Bidders can also register on online using the Bidders Registration Form. After a prospective Bidder submits the Bidders Registration Form, The Stove Auction will contact the prospective Bidder to set-up an on-site interview to finalize the registration process. It is estimated to take one week to register and create an account for each prospective Bidder before they can start participating in the auctions. How do I place a bid? The only way to place a bid is via SMS messaging. Once registered, Bidders will be notified via email or SMS message of upcoming auctions and the stoves and volumes that will be available. Bidders will also be notified of the start and end time of the auction. During that window of time, Bidders can SMS message their bid amount and volume of stoves they want for each specific stove model available at that auction. The bidding process is further described on the Auctions Overview page. How do I pay for my purchase? After the auction, The Stove Auction team will immediately invoice the Buyers based on their registration contact information. The final amount due will include the hammer price, the buyer’s premium, and any local taxes. Buyers have seven (7) business days to pay in full and pick up the stoves from The Stove Auction warehouse. Buyers can pay by bank transfer, cheque or cash. Payment must be sent from the invoiced party and not from a third party. How will I receive my property? The portion of the Lot that the Buyer has won will be released to them or their authorized representatives when full and cleared payment, including any applicable taxes and fees has been received by The Stove Auction. It is The Stove Auction’s policy to request proof of identity on collection of a lot. If the Buyer wishes to appoint a third party to collect any property on their behalf, they must provide one of the following documents to The Stove Auction prior to release:
The Stove Auction team can also arrange third party domestic shipping to the delivery address the Buyer listed when they registered for the auction. The Stove Auction team will send them a shipping quote for their approval. The quote will include an administrative fee for The Stove Auction’s own account of 10% of the shipping quote or a minimum of US$50.00 per shipment. Liability for Loss or Damage: Buyers are reminded that The Stove Auction accepts liability for loss or damage to lots being stored at The Stove Auction warehouse for a maximum period of seven (7) business days after the date of the auction. How much are the cash incentives and what do I need to do to receive them? The cash incentive to Buyers is calculated based on the performance of the stove and are categorized into Standard or Premium level categories according to the Stove Selection Criteria. Standard level includes stoves that achieve 10-19% fuel savings according to local controlled cooking tests (CCTs) and IWA Tier 2 or higher in total emissions, and a "Good" or higher rating in safety. Premium level includes stoves that achieve 20% fuel savings or higher according to local CCTs and IWA Tier 3 or higher in total emissions, and a "Best" rating in safety. Each performance characteristic is then multiplied by different weight factors, resulting in an overall score for each performance characteristic. The highest weight is given to ‘total emissions’ to push innovation on cleaner stoves. Each point in the overall score is then priced at EUR 1.00 in year 1 and is phased downward by 20% per year. Standard Level: 2016: EUR 12.00 2017: EUR 9.60 2018: EUR 7.68 Premium Level: 2016: EUR 18.00 2017: EUR 14.40 2018: EUR 11.52 The RBF amounts per stove have been amended. See NOTICE TO BIDDERS: New RBF Cash Incentive Level to Buyers Based on Retail Pricing: Effective Auction KH0047 (12 April 2018) In order for Buyers to claim cash incentive payments they must submit transaction records to The Stove Auction. The key transaction records include:
Digital copies of the Customer Registration Cards must be provided to The Stove Auction. They can be scanned copies or digital photographs and submitted to The Stove Auction via WeTransfer, Dropbox, Google Docs are another program used to transfer large data files. Each digital version of a card shall be its own file and the file name should be the serial number. The Stove Auction does not accept hard copies nor are we responsible for digitizing your hard copies. |
CONTRACT FOR SALE (25 October 2016) [ENGLISH] [ភាសាខ្មែ]
BUYER AGREEMENT (09 February 2017) [ENGLISH] [ភាសាខ្មែ]
What information is included in a Sales Report?
The Sales Report contains consolidated information on the transactions with end-consumers, and includes the following information:
What is the bonus payment I receive for providing end-consumer training? An end-consumer training bonus is provided to Buyers to incentivize them to take the time and walk their customers through the stove user manual, operations of the stove and warranty and after-sales service information. The bonus is valued at 5% of total Buyers cash incentive claim. To earn the training bonus, Buyers need to explain to the end-consumer a number of things about the stove. And end-users need to state to the independent verification auditors (phone calls and physical inspections) that the Buyers explained those things and also answer a few key questions related to the content of the materials. How do you determine whether I receive cash incentive payments or not? The Buyer's cash incentive claims will be paid in full by The Stove Auction if (1) 80% or more of end-consumers telephoned are able to confirm the purchase of the stove from the respective Buyer plus confirm the serial number of the stove that matches the Buyer's transaction records and if (2) 80% or more of all physical inspections are successful confirming the stove is on location and the serial number matches the transaction records. In determining a pass or fail, during onsite or phone verification, a distinction needs to be made between fraudulent behaviour and reporting errors. Fraudulent behaviour could include, false claims to non-existing customers and non-approved products being sold. This will lead to suspension of the Buyer from participating in The Stove Auction. In case of reporting errors - sales report not fully completed, incorrect spelling or numbers in sales report, miscalculations, etc. – The Stove Auction will be more lenient. Cash incentive claims will be deemed to have failed verification process when greater than 20% of consumer claims as inspected either onsite or via phone prove false. Bonus payment for end-consumer training will be reduced based on the number of failed telephone inspections and failed physical inspections when dealing specifically with the end-consumer training questions. For example: a Buyer provides a sales report of 100 transactions (in other words stoves sold) for which they are requesting cash incentive payments. Only 9 out of the 10 telephone inspections are successful in terms of consumers successfully answering the end-user training questions. A sample size of 5% of transactions in the sales reports will be physically inspected, which equals 5 end-consumer level physical inspections. If 4 out of the 5 transactions are successfully verified for end-user training during the physical inspection, this equates to an 80% success rate. The 80% success rate will be multiplied against the 9 successful telephone inspections, resulting in 72 successful claims by the local distributor to receive the bonus payment. What if I wanted to pay the Full Wholesale Value outside the auction to ensure supply? If there is demand from Buyers to pay The Stove Auction the Full Wholesale Value of the stove then The Stove Auction would sell stoves directly to Buyers and bypass sending these stoves to auction. The Stove Auction would still charge a Sellers Fee and Buyer's Premium. The Buyers (local distributors / retailers) would still receive cash incentive payment for stoves they sell to end-consumers that can be verified by an independent auditor. Who bears the foreign exchange risk on the cash incentive payments to Buyers? The cash incentive payment for Buyers is priced in Euros and will be converted to United States Dollars based on the exchange rates for the month that the cash incentive claim takes place, as long as the claim is complete. Meaning that it must be accompanied by a Sales Report and Registration Cards. The monthly exchange rates are provided by SNV corporate headquarters and taken from the rates published by the Rabobank on the first day of the accounting month. The exchanges are posted on The Stove Auction homepage. Note that Euros is the currency denomination of SNV's contract with GIZ/EnDev. |
