Sales Policies

Network Video Technologies
4005 Bohannon Drive • Menlo Park, CA • 94025
650.462.8100 • 800.959.9870
FAX 650.326.1940 • nvt.com Rev. 11-2013
2014 Sales Policies
&
Programs
__________________________
Sales Policies
Discount Pricing Policy
Distributor Stocking Discount
Discounting Process in Salesforce.com
Samples Policy
Complimentary Goods/Discounting
Discounting and Commissions
Commission Distribution – Non Gaming
Commission Distribution – Gaming Market
__________________________
Sales Programs
*50% Off first 16 cameras – Analog
*25% Off first 8 cameras – EoC/Eo2 Only
*Trade-in xx62 for xx72
*Trade-in xx13/xx13S for xx72/xx42
*Competitive Trade-in

650.462.8100 • 800.959.9870
FAX 650.326.1940 • nvt.com Rev. 11-2013
Pricing Policy
Customer Pricing Level Guidelines
The following guidelines have been formally implemented with respect to
NVT Customer Pricing Levels:
< $5,000 per Year Refer to Distribution
$5,000 to $20,000 Dealer Pricing
$20,000 to $100,000 Gold Dealer Pricing
> $100,000 per Year Platinum Dealer Pricing
NVT will use the average of three years sales to establish a benchmark for
categorizing particular customers going forward. These pricing levels are
guidelines. It is widely recognized that NVT has strategic customers who
wouldn’t necessarily qualify for a particular pricing level, however due to
marketplace dynamics, have been positioned at a more favorable level. It is
also understood that NVT has many customers at Gold Dealer and Platinum
pricing that have purchased far less than the aforementioned levels.
Customers who do not meet the three-year average minimum sales , or
qualify as strategic, will be assigned to the appropriate pricing level on April
1st
of each year. Customers who do not meet the dealer benchmark of at
least $5,000 per year for the past 2 years, or qualify as strategic, will be
referred to distribution on April 1st
of each year. For customers in good
standing, this referral will be a letter introducing the benefits of buying
through distribution accompanied by a list of approved NVT Distributors.
NVT does not wish to demand these customers buy from this channel due to
the potential backlash.
There is a subset of customers, in the sub-$5000 per year category, who are
not necessarily in good standing with NVT. Their purchasing volumes are
low and they have significant issues with credit terms or payment history.
It is NVT’s intent to require these customers purchase through distribution
effective April 1st
of each year, or be migrated to a prepay status. A list of
these accounts will be provided to NVT Sales and there will be an
opportunity to discuss specific situations with the Finance department prior
to formal implementation.
All strategic accounts need to be approved by the Vice President of Sales
and will be up for review on an annual basis.
Ongoing, customer sales rates will be monitored on an annual basis. A
summary report will be issued by Sales to the following parties: Finance, VP
of Sales, District Manager and any other territory-based Salesperson
responsible for managing relationships with NVT customers. NVT Sales will
work with the Manufacturers Representatives to communicate attainment of
sales volumes with each customer and set expectations for maintaining
current pricing levels or moving to lower/higher pricing in the future.

650.462.8100 • 800.959.9870
FAX 650.326.1940 • nvt.com Rev. 11-2013
Pricing Policy
Customer Pricing Level Guidelines (continued)
During the 1st
quarter of each year, we will begin notifying customers of
their migration to new pricing levels, based on attainment of required
minimum sales volumes or lack thereof. Formal pricing changes will go into
effect on April 1st
of each year.
If a customer attains sales volumes, required to move to a lower pricing
column, during the annual period, NVT will immediately transition the
customer to the achieved level for the balance of that year in addition to the
following annual period.

650.462.8100 • 800.959.9870
FAX 650.326.1940 • nvt.com Rev. 11-2013
Discount Pricing Request Policy (for Dealers and
Distributors)
Situations that may warrant pricing concessions include:
1) Meet comp where principal competitor is a core UTP or EoC/Eo2
vendor (Altronix, ComNet, Nitek, Vigitron, Veracity, etc.) and a pricing
concession gives us a better chance of competing for the business.
2) Meet comp where known integrator competing with NVT customer is
an integrator with a significant pricing advantage (NAV, Southwest, Global,
SSI, etc.) and we desire a level playing field.
3) Meet comp where the principal competition is coax, or an offshore
discount supplier, and the deal is strategic. (Example: Major retailer needs
lower BOM cost to justify major rollout of UTP CCTV to 100’s of stores.)
The following levels of signoff are required for variance from the currently
approved pricing column:
Up to 2.5% District Manager or National Distribution
Up to 7.5% Mike Mahan
Up to 15% Guy Apple/Paul Speller
>15% Dan Nitzan
Note: In some situations, NVT will prefer to issue the discount to the
customer as a “package” price vs. a line item price per unit. Please be
cognizant of this strategy as it will protect NVT from revealing individual
price points for future customer negotiations.

650.462.8100 • 800.959.9870
FAX 650.326.1940 • nvt.com Rev. 11-2013
Distributor Stocking Discount
NVT has recognized that our products have a better chance of moving if
they are in stock in the first place. This promotion is available to regional
distributors or branch locations of national distributors who have local
decision making authority. The objective of this program is to motivate a
non or low-stocking branch to step up with an initial stocking order of at
least $5,000. This is a one-time promotion and the specific distributor
location will be afforded a 10% discount on all NVT goods purchased on a
single purchase order of at least $5000. The purchase order may come from
a distributor’s headquarters location however, must identify the stocking
branch. All NVT products will be shipped to the stocking branch. These
goods are non-returnable for refunds, however NVT will swap goods for
products that have higher turnover as long as the distributor pays all
associated shipping costs for the return of the slower-moving goods and
shipment of new goods.
This promotion is location specific. Distributors with regional or national
footprints cannot use this promotion as an avenue to lower their pricing on
an ongoing basis. Special care should be used on behalf of NVT Sales to pay
attention to any potential abuse of this program.
District Managers, Regional Managers or the National Distribution Manager
may promote this program openly within their regions. Inter-region
communication is encouraged for the purposes of keeping everyone on the
same page and eliminating the specter of preferential treatment.
Documentation must be in Salesforce.com prior to accepting an order under
the auspices of this promotion.
Distributors wishing to take advantage of this program should send a single
purchase order over $5000 to NVT with a 10% deduction and a notation:
“One-Time Single-Location Promotional Stocking Discount.”

650.462.8100 • 800.959.9870
FAX 650.326.1940 • nvt.com Rev. 11-2013
NVT Discount Request Process
*Discount requests must be processed through Salesforce.com and fully
approved before pricing can be submitted to the customer.
*All discount requests, other than sample requests, must be linked to an
Opportunity and Account. Detailed information on the competitive situation
is required if the Discount Request is related to a competitive reason. In all
cases, be as detailed as possible when entering information under the
Request Details section.
*When calculating the Discount %, use the total value of the entire deal at
the current customer pricing level as the base price against the total value
of the proposed deal.
*When discounts involve complimentary products, use the customer column
pricing to calculate the value of the complimentary goods and, if the
complimentary products involve “B” Stock, 50% of the customer column
pricing.

650.462.8100 • 800.959.9870
FAX 650.326.1940 • nvt.com Rev. 11-2013
NVT Samples Policy
NVT’s purpose for providing samples is to provide:
1) our sales people and/or NVT reps with showcase or demonstration
units.
2) our sales people and/or NVT reps with loaner units for customer
evaluation.
3) potential customers, specifiers, or strategic industry leaders with
NVT evaluation product.
4) a method to reduce the effective price of large strategic sales,
without lowering the published price (requires supervisor’s approval)
In any of these cases, approval authority shall be:
Total Value Authority
(based on distributor price)
Up to $300 Local Sales Manager
Up to $1000 Mike Mahan
Up to $2500 Guy Apple/Paul Speller
>$2500 Dan Nitzan
B-stock items offered as samples shall be valued for approval at half the
distributor price of comparable new devices. Newly released product that is
on allocation requires supervisor’s approval.
Requests for samples should be entered into Salesforce.com for approval via
the Discount Request process.
Some sample requests from selected customers may include a commitment
to pay 50% of the sample value. In cases where customers offer to pay
50% for samples, NVT Management requires basic information before
approving these requests; Have samples been issued to this customer in the
past? Do they have a demo room, or are they simply installing their internal
surveillance system on NVT equipment? This basic level of information is
key to ensuring NVT customers are not buying samples at a 50% discount
and re-selling the gear to their customers.
Please enter these as Discount Requests and check the box: “Customer to
pay 50% for samples.” When calculating the value of complimentary goods
in a situation where the customer is paying 50%, please utilize 50% of US
Distribution pricing as the complimentary value.
Christine shall provide monthly reporting to the management team,
outlining the date, model(s), samples total shipment value, and purpose.

650.462.8100 • 800.959.9870
FAX 650.326.1940 • nvt.com Rev. 11-2013
Complimentary Goods in Lieu of Discounts Policy
Whenever possible, NVT Sales will attempt to provide complimentary goods
in lieu of a discount. Complimentary goods will count at the currently
approved price column toward the discount percentage.
In most cases, NVT prefers to provide new product in these situations as
opposed to “B” stock.
In the rare case that B-stock items are offered as complimentary goods,
they will be valued at half the approved column price of comparable new
devices. In all cases, “B” stock items will be positioned as used and
refurbished with the customer and never be represented as “new.”

650.462.8100 • 800.959.9870
FAX 650.326.1940 • nvt.com Rev. 11-2013
Impact of Discounts on Commissions
NVT commissions and bonuses are based on the sale price. Occasionally,
with supervisor's approval, additional concessions will be made to facilitate
the closing of a strategic deal. These concessions might include, but are not
limited to complimentary goods, B-stock, and/or free shipping outside our
normal practices. The sale price for purposes of calculating commissions or
bonuses shall include these concessions.
Impact of Unauthorized Discounts on Commissions
Sales Managers will be subject to commission recovery in the event of
making discount commitments, beyond the aforementioned limits, to
customers prior to formal approval via the Salesforce.com Discount Request
process. The commission recovery will be an amount up to the difference
between the Authorized price and the Sale price deducted in the month of
infraction or subsequent months. Violations of this policy will be subject to
disciplinary action.

650.462.8100 • 800.959.9870
FAX 650.326.1940 • nvt.com Rev. 11-2013
Commission Distribution for the Non-Gaming Market
NVT recognizes it is important to maintain a Commission Policy in order to
compensate those who are doing the work and minimize disputes arising
from cross-territorial projects. In particular, these situations include:
1) Projects worked locally with an A&E or end-user and a local
dealer/integrator when a NVT dealer/integrator from another geographical
territory wins the job and is providing project integration services. Or,
projects worked locally with an A&E or end user that may go through
distribution to locations outside the local NVT or Rep’s territory. In order to
receive credit for their efforts, the local NVT Salesperson and Manufacturers
Representative will be required to:
• Enter a Specification Document on the NVT Web Site at least 30 Days
prior to order
AND
• Enter an Opportunity in SF.com at least 30 Days prior to order
In this case, 50% of the order value (NVT employee) and commission (NVT
Rep) goes to the local territory and 50% to the territory where the
integrator resides when the purchase goes direct to the integrator. Or, in
the case of local efforts that generate business shipping via distribution,
outside of the local territory, 50% of the order value and commissions will
go to the local NVT and Rep sales territory. The remaining 50% will go to
the installation territory as validated by POS. In some cases, NVT reserves
the right to boost the Rep commission from 7.5% to 10% for split purposes
when significant efforts were made in both territories.
Projects not worked locally with an end-user or local dealer/integrator
when a NVT dealer/integrator from another geographical territory wins the
job and is providing project integration services. In this case, if there is no
accompanying documentation on the NVT Web site or in SF.com, 100% of
the order value and commission goes to the territory where the
dealer/integrator, providing the integration services, resides.
Projects worked locally with an end-user and local dealer/integrator when a
NVT dealer/integrator from another geographical territory wins the job and
is not providing project integration services but instead, drop shipping
equipment, like a Distributor, for end user installation. In this case, 100%
of the order value and commission goes to the installing territory.
Projects worked locally with an end-user and/or local dealer/integrator that
purchases from a Distributor who drop ships the product to the local job site
or dealer/integrator. In this case, 100% of the order value and commission
go to the ship-to territory pending location verification or POS information.

650.462.8100 • 800.959.9870
FAX 650.326.1940 • nvt.com Rev. 11-2013
In order to support this process, NVT will be adding fields to the
Opportunities section of SF.com. The additional fields will be used to
determine the intentions of the Dealer/Integrator for a given project. NVT
Sales will be required to ask the Dealer/Integrator if the project will utilize
their integration services or, if they are merely shipping equipment for
installation by the end user. No Discount Requests will be approved for
dealer/integrators without an understanding of the role of the
Sales efforts
applied to:
Sales efforts
applied by: Order received by:
Shipped to End
User or
Dealer/Integrator
by: Commission Distribution to:
End User (A&E
in the case of a
specification) or
Dealer/Integrator
Local
Dealer/Integrator
and NVT
Sales/Rep
Out of Territory
Dealer/Integrator who is
providing integration
services.
NVT (drop ship)
or Out of
Territory
Dealer/Integrator
Commissions are paid
50/50 to local sales
team/out of territory sales
team with the following
supporting documentation:
Specification form entry at
nvt.com and Opportunity
entry in SF.com* *Failure to
enter appropriate
documentation will result in
100% commission payment
to the out of territory sales
team.
End User (A&E)
or
Dealer/Integrator
Local
Dealer/Integrator
and NVT
Sales/Rep
Distributor for locations
outside of NVT Sales/Rep
territory.
Distributor or
NVT via drop
ship
50/50 split when supported
by NVT Spec Form and
SF.com Opportunity.
End User or
Dealer/Integrator
Out of Territory
Dealer/Integrator
and NVT
Sales/Rep
Out of Territory
Dealer/Integrator who is
providing integration
services.
NVT (drop ship)
on behalf of Out
of Territory
Dealer/Integrator
100% of the commission
will go to the territory where
the Dealer/Integrator
resides.
End User or
Dealer/Integrator
Local
Dealer/Integrator
or Distributor
Out of Territory
Dealer/Integrator/Distributor
(and drop shipped to
customer) where no
integration services are
provided.
NVT (drop ship)
on behalf of Out
of Territory
Dealer/Integrator
will go to the territory of the
installing end User or
Dealer/Integrator
End User or
Dealer/Integrator
Distributor Distributor
Distributor via
stock or drop
ship
will be based on POS or
Ship-To details
dealer/integrator in a given deal.

650.462.8100 • 800.959.9870
FAX 650.326.1940 • nvt.com Rev. 11-2013
Commission Distribution for the Gaming Market
This policy has been added due to the unique attributes of the Gaming
market whereby integrators in one territory are often working on projects in
another. NVT is interested in promoting teamwork between Regional and
District managers in addition to ensuring Manufacturers Representatives
are working together to ensure maximum success.
With the exception of any previous agreements, credit for Gaming
transactions will be determined by the following process:
A PO arrives at NVT and is identified, by Sales Operations and/or VP of
Sales, as a Gaming Project that crosses territorial boundaries. That means
either the Integrator or End User are in different Regions.
If there is a Spec Form in place, the Spec Form will contain 3 important
pieces of information to assist Sales Operations in determining commission
distribution; 1) The Rep(s) involvement in a given deal with the end user
and/or Integrator, 2) The commission split % as agreed between Eastern
and Western Regional Managers and 3) Justification for a 10% payout, if
warranted. Finally, the Spec form requires the approval of the VP of Sales.
All of this activity should take place no less than 30 days before receipt of
PO.
The Spec Form will be the primary resource utilized by Sales Operations to
determine commission distribution for a cross territory gaming project.
If there is no Spec Form, the project would automatically fall into the
standard 50/50 gaming split scenario between East and West NVT Regions
and between Eastern Rep Firm and Western Rep Firm aligned with
Integrator bill-to and End User ship-to address.

650.462.8100 • 800.959.9870
FAX 650.326.1940 • nvt.com Rev. 11-2013
2014 NVT Sales Programs
50% Off of the First 16-Camera Job Program - Analog
Valid Through 9/30/14
The intent of this one time only promotion is to nudge a prospective customer into the
world of NVT. Whether the customer has been faithful to competition, or coax, this “first
time buyer’s program” is intended to provide a dealer/integrator with motivation to break
an old habit.
*The District Manager or National Distribution Manager must receive approval to offer this
promotion prior to presenting it to the customer.
*This program is not available to dealers or integrators with sub-Platinum pricing.
*The program is applicable to all components required for the specific application and
includes camera end transceivers, PS products, 716’s and receivers. The total amount of
goods provided at 50% off is limited to 16 channels worth of NVT equipment. Upon
approval from NVT the customer should enter “NVT First Time Buyer’s Program” on the
Purchase Order and deduct 50% of the price for these components only.
Note: These program opportunities shall be entered as Discount Requests in
Salesforce.com and will need appropriate approvals prior to shipment.
USE PROGRAM CODE 1TB50 WHEN SUBMITTING PURCHASE ORDER TO INITIATE THE 50%
OFF FIRST PURCHASE PROGRAM

650.462.8100 • 800.959.9870
FAX 650.326.1940 • nvt.com Rev. 11-2013
25% Off of the First 8-Camera Job Program – EoC/Eo2 Only
Valid Through 9/30/14
The intent of this one time only promotion is to nudge a prospective customer into the
world of NVT IP. Whether the customer has been faithful to competition, or re-cabling,
this “first time buyer’s program” is intended to provide a dealer/integrator with
motivation to break an old habit and try EoC or Eo2. This program can also be offered to
Distribution
*The District Manager or National Distribution Manager must receive approval to offer this
promotion prior to presenting it to the customer.
*This program can be offered to Distribution, however, Distribution must pass the
discount along to the customer. For that reason, each deal should be managed by the NVT
District or Region Manager. Offering an ongoing program to a Distributor would be
contingent upon developing a Distributor-specific program whereby the Distributor’s
offering of the specific program meets mutually acceptable guidelines.
*The program is applicable to all components required for the specific application and
includes camera end transceivers, transmitters and receivers. The total amount of goods
provided at 25% off is limited to 8 channels worth of NVT equipment. Upon approval from
NVT the customer should enter “NVT First Time Buyer’s Program” on the Purchase Order
and deduct 25% of the price for these components only.
Note: These program opportunities shall be entered as Discount Requests in
Salesforce.com and will need appropriate approvals prior to shipment.
USE PROGRAM CODE 1TB25 WHEN SUBMITTING PURCHASE ORDER TO INITIATE THE 25%
OFF FIRST PURCHASE PROGRAM

650.462.8100 • 800.959.9870
FAX 650.326.1940 • nvt.com Rev. 11-2013
Trade-In of Installed xx62 Hubs for New xx72 Hubs
Valid through 9/30/14
NOTE: This promotion may not be combined with any other promotion or Project
Registration.
There are thousands of NVT active hubs installed today at thousands of customer locations
worldwide. The trade in program provides customers with an opportunity to upgrade to
the latest technology. These customers represent good possible incremental revenue
opportunities, providing it makes financial sense on their end.
In order to keep this program simple to manage, via the Dealer/Integrator channel, we
will actually offer an account credit on completion of the trade-in process. The credit will
be 20% of the NVT customer’s current column pricing on the xx72 for a channel-for-
channel upgrade from existing xx62 to new xx72 product. These hubs must be received
within 90 days of customer receipt of xx72 hubs.
Let’s consider an example where a dealer/integrator presents this concept to their end-
user customer and the end user agrees to upgrade their (10) old 3262’s for (20) 1672’s.
This particular user was sold on the value of the improved video quality and the DA
feature, which was unavailable when the original system was installed many years ago.
For the purpose of this example, we will assume the dealer/integrator has Platinum
pricing. The deal would be for (20) 1672’s at $1850 each or $37,000. The
dealer/integrator would issue a PO in this amount and submit to NVT. We would ship the
units to the customer, or end user, and invoice the dealer/integrator for $37,000. Upon
receipt of the (10) 3262’s, NVT will issue a credit in the amount of $7,400 and the
dealer/integrator now owes $29,600. The key here is an expeditious return of existing
gear will generate the quickest credit. Failure to return the 3262’s will mean the
dealer/integrator is liable for the entire $37,000 invoice.
This promotion may also flow through Distribution; however, the rebate will be issued
from NVT to the Dealer (or end user in rare instances). Once NVT receives the returned
xx62 hubs, NVT will issue a rebate check in the amount of $200 for an 862, $400 for a
1662 and $800 for a 3262.
End users who buy directly from distribution can also participate in this program, however
it is unlikely the distributor will introduce this promotion to the end user. NVT and our
best dealer/integrator partners - those who can articulate the value proposition of this
upgrade, will generate the demand for this program.
USE PROGRAM CODE DEQ20TI WHEN SUBMITTING PURCHASE ORDER for xx62 to xx72.

650.462.8100 • 800.959.9870
FAX 650.326.1940 • nvt.com Rev. 11-2013
2014 Promotions
Passive-to-Active Trade-In
NOTE: This promotion may not be combined with any other promotion or Project
Registration.
This program is similar to the xx62 to xx72 program. However, the total available market
of customers with existing NVT passive gear who would consider upgrading to NVT Active
receivers is much larger and the benefits received from moving from Passive to Active are
far greater than those received from a xx62 to xx72 upgrade.
NVT will provide existing passive customers with increased motivation to migrate to
newer active receiver technology. Installations where customers were pushing, or
exceeding, the limits of passive-to-passive distances, or customers with high resolution
cameras at distances beyond 500’, are prime candidates. This program should be
introduced to all integrators who have installed NVT passive-to-passive systems.
The Passive-to-Active trade in will be managed like the xx62 to xx72 program. NVT will
offer a credit (discount) to the Dealer/Integrator on receipt of the NVT passive hubs being
“traded in.” The credit (discount) will be 20% of the NVT customer’s current column
pricing on a channel-for-channel upgrade from existing xx13 or xx13S to new xx72
product. Or, the Dealer/Integrator will receive a 15% credit (discount) off their existing
column pricing when trading in xx13 or xx13S hubs for new xx42 hubs. In order to
receive the credit, the passive NVT hubs must be received within 90 days of customer
receipt of xx72 or xx42 hubs.
This promotion may also flow through distribution; however, the rebate will be issued
from NVT to the Dealer (or end user in rare instances). Once NVT receives the returned
xx13 or xx13S hubs, NVT will issue a rebate check in the amount of $100 for an 813/813S,
$200 for a 1613/1613S and $400 for a 3213/3213S.
End users who buy directly from distribution can also participate in this program however,
it is unlikely the distributor will introduce this promotion to the end user. The demand for
this program will be generated by NVT and our best dealer/integrator partners - those
who can articulate the value proposition of this upgrade, will generate the demand for this
program.
USE PROGRAM CODE DEQ20TI WHEN SUBMITTING PURCHASE ORDER FOR xx13 OR xx13S
TO xx72.
USE PROGRAM CODE SEQ15TI WHEN SUBMITTING PURCHASE ORDER FOR xx13 OR xx13S
TO xx42.

650.462.8100 • 800.959.9870
FAX 650.326.1940 • nvt.com Rev. 11-2013
2014 Promotions
Competitive Trade-In
NVT may consider a competitive trade-in to swap out existing installed passive or active
receivers, from selected manufacturers, to active NVT Receivers. Each deal will need
approval from NVT Management via the Discount Request Process.

650.462.8100 • 800.959.9870
FAX 650.326.1940 • nvt.com Rev. 11-2013
Read and Acknowledged
-----------------------------
Name
-----------------------------
Date
Fax to 650-326-1940

Sales Policies

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (10)

Similar to Sales Policies

Similar to Sales Policies (20)

Sales Policies