BabiSender: Created page with "= Partner Reseller Pricing = == 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 sy..."

2026-02-25T07:00:04Z

Created page with "= Partner Reseller Pricing = == 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 sy..."

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= Partner Reseller Pricing =

== 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.

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== Definition of Terms ==

{| class="wikitable"
|-
! Term
! Definition
|-
| '''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.
|}

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== 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 Estimation and Approval ===
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 Sharing ===
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:'''

{| class="wikitable"
|-
! Item
! Amount
|-
| Project Value
| ₱360,000
|-
| Cost (₱80,000 materials + ₱50,000 labor)
| ₱110,000 (note: labor ₱50k listed separately)
|-
| Net Profit
| ₱250,000
|-
| Comfac Share (60%)
| ₱150,000
|-
| AA Share (40%)
| ₱100,000
|-
| Comfac remits to AA
| ₱100,000 (profit) + ₱80,000 (materials) = ₱180,000
|}

=== 1.3 Labor Baseline ===
Standard labor baseline: '''₱1,500 per man-day.'''

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

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== 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, 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'''.

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== 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.

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== 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.

Partner Reseller Pricing 251109 - Revision history