Some Vendors (especially in India) require a registration deposit for providing documents and samples, before moving forward with the registration. Registration deposit is a tool of the Vendor to make sure AdvaCare is a reliable Customer and is able to make payment prior to starting the registration process.
AdvaCare can accept paying registration deposit, however there are several rules to be discussed with the Vendor before payment is made:
Deposit should be of reasonable amount, which must be confirmed with Salesperson before moving forward.
Deposit is refundable, and must be refunded by Vendor in the final payment of the first commercial order for the same product and the same registration market.
Before moving forward to arrange the payment, Purchasing Person must try to negotiate the terms with the Vendor to achieve the following:
Deposit amount has to be as low as the Vendor can agree to.
Deposit amount has to be refundable. If the Vendor does not agree to refund the whole amount in the first commercial order, then the refund has to be split between several consecutive orders (2 or 3). It is also acceptable if part of the deposit is non refundable (for example, PP or COPP charges in India, which is usually a low amount, <100 USD).
How to negotiate Registration Deposit
Double check all the terms discussed with the Vendor previously.
Inform the Vendor that we are willing to move forward with the registration, however we only have the budget of X to proceed.
At the same time, inform the Vendor that usually deposit can be refunded in the first commercial order after registration completion. It is required to settle this term before moving forward.
If Vendor is not replying quickly, urge the Vendor by multiple follow ups via QQ/Email/Skype/WA/Phone etc. to confirm the terms as we want to start the registration ASAP.
If there is any complication with the Vendor, send a task to Purchasing Dept. Manager.
Once all the details are confirmed, move forward to the next step, which is Finalizing the Agreement.
NOTE: negotiation process must not take longer than 1-2 days.