Discounts in Select Plus

Select Plus eliminates the purchase forecasting found in Select, instead basing prices on actual purchase volumes.

This example compares discounts for the same purchases under Select and Select Plus agreements. For Select Plus (solid line), a customer who does not have a current Select or Enterprise Agreement initiates a new Select Plus agreement in 2009 with a purchase that earns 5,000 points, putting it at a level B discount. A subsequent purchase of 23,000 points drops the price to the Level D discount level, which carries over to 2010. That year’s purchases, only 1,000 points, are not sufficient to sustain the Level D discount and could drop the customer’s discount in 2011 to Level B, but because Select Plus policies allow the customer’s discount level to decrease no more than one level, the discount goes only to Level C at the start of 2011. A purchase of 28,000 points early in 2011 brings the discount back to Level D for the remainder of the year and for the following year (not shown).