GUIDELINES FOR SELLERS
How does the auction work?
The Stove Auction pre-qualifies a number of stove models according to the Stove Selection Criteria determined by The Stove Auction's Market Regulation Committee (officers from SNV Netherlands Development Organisation and the GIZ administered Energising Development (EnDev) Programme.)
The Stove Auction then reaches an agreement with stove suppliers ("Sellers") for consigning their stoves to The Stove Auction at their own cost (including all shipping and import related expenses). 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-consumer, which can later be verified by an independent auditor.
What countries is The Stove Auction located?
The Stove Auction concept is currently being implemented in Cambodia and Vietnam. For more information on the Vietnam auction, please visit here.
Who runs The Stove Auction in each country?
SNV has contracted management of The Stove Auction in Cambodia to C-Quest Capital (Cambodia) Co. Ltd ("CQC"). CQC is responsible for the day-to-day management in Cambodia only. SNV Vietnam implements The Stove Auction in Vietnam.
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 their cost of capital and cost of moving unsold stoves to a new location as part of their pricing strategy.
CONTRACT FOR SALE (25 October 2016) [ENGLISH] [ភាសាខ្មែ]
BUYER AGREEMENT (09 February 2017) [ENGLISH] [ភាសាខ្មែ]
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 is a percentage of the Guarantee Price. The Sellers Fee will be deducted from the winning bid amounts collected by The Stove Auction from the Buyers. This fee also covers storage of the stoves at The Stove Auction warehouse.
What is the eligibility criteria for stoves to be pre-qualified?
Stoves must be considered a “gasifier” stove, either natural draft or fan/forced-air. Please see Stove Selection 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 the currency of the transactions with Sellers and Buyers?
Guarantee Prices will be agreed with Sellers in Euros, thus The Stove Auction will transfer payments to Sellers in Euros. Bank charges for wire transfer fees will be deducted from the payment.
Stoves sold at auction to Buyers will be in USD currency and will be converted to Euros based on the exchange rates for the month that the auction for which the stoves were sold took place. 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. Note that Euros is the currency denomination of SNV's contract with GIZ/EnDev.