GUIDELINES FOR SELLERS
How does the auction work?
The Stove Auction pre-qualifies a number of stove models according to eligibility criteria determined by SNV Netherlands Development Organisation and the GIZ administered Energizing Development (EnDev) Programme.
The Stove Auction then reaches an agreement with stove producers or their agents ("Sellers") for consigning their stoves to The Stove Auction at their own cost (including shipping). This agreement includes the price per stove that The Stove Auction is able to guarantee the Seller no matter what the stoves are sold for at auction.
The difference between the guarantee price and the auction price is covered by a Results Based Financing Scheme financed by the GIZ/EnDev, and implemented by SNV Netherlands Development Organisation.
Local distributors and retailers ("Buyers") who purchase the stoves also get an incentive for every stove they sell to end-users, which can later be verified by an independent auditor.
What countries is The Stove Auction located?
The Stove Auction concept will first be tested in Cambodia in early 2016, and rolled out to Laos and Vietnam afterwards.
Who runs The Stove Auction in each country?
The Stove Auction will be run by a third party yet to be selected by SNV.
Why would Sellers want to participate in The Stove Auction?
(1) The Stove Auction provides a low cost way to enter new markets in Southeast Asia and an attractive opportunity to get in early as the market for advanced biomass stoves is essentially untapped; (2) Sellers are guaranteed the price per stove that is mutually agreed between the Seller and The Stove Auction; and (2) The Stove Auction has the potential to attract a large number of Buyers; therefore Sellers do not need to invest in direct relationships with local sales channels at this early stage of market development of advanced biomass stoves.
What risks should Sellers consider as part of their participation?
Although the price that the Seller's receive for each stove sold at auction is guaranteed, it is not guaranteed that their stoves will be purchased by Buyers. Since the stoves are still the legal property of the Sellers until they are sold at The Stove Auction, Sellers may consider the cost of moving unsold stoves to a new location as part of their pricing strategy.
Are there fees for consigning stoves to The Stove Auction?
The Stove Auction charges a Sellers Fee on each stove unit sold at auction. The Sellers Fee will be deducted from the bid amount for each stove sold at the auction. This fee also covers storage of the stoves at The Stove Auction warehouse.
STOVE ELIGIBILITY CRITERIA AND TESTING REQUIREMENTS
[ENGLISH / KHMER]
CONTRACT FOR SALE OF GOODS [ENGLISH / KHMER]
BUYER'S AGREEMENT [ENGLISH / KHMER]
GLOSSARY OF TERMS [ENGLISH / KHMER]
What is the eligibility criteria for stoves to be pre-qualified?
First, stoves must be considered a “gasifier” stove, either natural draft or fan/forced-air. This is defined as:
"Gasifier stoves force the gases and smoke that result from incomplete combustion of biomass fuels back into the cookstove's flame, until almost complete combustion has occurred, resulting in very few if any emissions. Gasifier stoves are also known as Top Lit Updraft (TLUD) stoves because some fuel is lit from the top of the stove, which forces combustible gases to pass through the flame. Gasifier stoves can also include a fan, to improve mixing of flame, gas, and smoke and to reduce emissions." Global Alliance for Clean Cookstoves website.
Stoves must meet certain International Workshop Agreement (IWA) Tiers of Performance; however the key determinant for pre-qualification is fuel savings based on controlled cooking tests (CCTs) conducted by SNV Netherlands Development Organisation in each of the three countries. Stoves would be compared to the most prominent baseline stoves in each country context. Please see Stove Eligibility & Testing Criteria for further information.
Who is responsible for shipping the stoves to The Stove Auction?
Sellers that consign their stoves to The Stove Auction are responsible for shipping the stoves and arranging import and customs clearance and local transport to the warehouse. The Stove Auction can provide recommendations on international freight forwarders that operate in each country and who can organize import and customs clearance, payment to customs office and local transport. The costs of this process should be investigated by Sellers and included in their pricing strategy.
What is meant by landed price per stove?
The landed price of a stove takes into consideration the ex-factory price of the stove, which typically already includes a profit margin, the costs of shipping a container to The Stove Auction divided by the number of stoves in each container, and the applicable import duties and customs clearance fees divided by the number of stoves in each container.