2008 Retailer Econometric Business Index (REBI)Program Manual
Introduction
The DEMA RetailerEconometric Business Index (REBI) was started to track retail equipment sales by retailers. DEMA and the reporting companies use this information to monitor long term sales trends and seasonal/regional market fluctuations.
DEMA has been involved in the monitoring of manufacturer sales information for over 20 years. DEMA is now prepared to conduct long-term retailer sales research designed to assist DEMA members and to help grow the Industry.This REBI Program Manual describes participation guidelines, reporting, participation consideration and program definitions.
Participation Guidelines
- Participation in the REBI program is strictly voluntary in accordance with antitrust guidelines and is for a minimum of one (1) calendar year ending on December 31st.
- Participation in the REBI program is open and free to any class A4 DEMA member. Any non-member company may participate in the program for an annual fee of $1,200.
- Each participant in the REBI program will complete and sign a written Voluntary Participation Agreement with DEMA. This agreement will be renewed each calendar year and will set forth the terms of commitment, promise of timely reporting, confidentiality, rights and remedies.
- Upon first joining the program participants will be asked to submit monthly reports for the previous year’s sales. This is requested in order to maintain continuity, supply comparative figures and help maintain anonymity.
- Regular, timely reporting will be required from each participating company. Participating companies report sales to a Third Party Administrator or TPA.
- All companies will be asked to record their information on a monthly basis and report it to DEMA’s Third Party Administrator (TPA) on a quarterly basis. Computations from survey will be used as a statistically valid indicator of actual business activity. The sales data will be designed to reflect stability and reliability of information similar to the Dow Jones Average.
- Participants that join the program by December 31, 2008 will receive the following benefits:
•The quarterly REBI report
which indicates sales data over the previous 3 months. Each report will contain national and regional data which can help the retailer analyze their own sales as well as those of the market.
•A FREE 2009 DEMA Membership*
*2008 Retail Members (A4) that report all requested figures to the REBI program under the specified guidelines will have their 2008 dues “rolled over” towards their 2009 membership.
- Participants who do not meet reporting deadlines or submit all reports requested of them will not be eligible for any of the benefits listed in item 7 above.
- Additional information or answers to questions about the REBI program may be obtained by contacting DEMA or DEMA’s TPA.
Reporting
- All aspects of REBI reporting will be handled by DEMA’s TPA to insure accuracy and confidentiality in accordance with antitrust guidelines.
2.All companies that participate in the program will receive summary reports. such reports will be provided with DEMA’s copyright and may not be duplicated, re-published or disseminated without the written permission of DEMA. DEMA, at its sole discretion, may create synoptic, executive summary reports that may be made available for wider distribution.
Definitions
- Sales Revenue - includes all retail sales from retail dive stores, mail-order companies, discount and warehouse outlets and any other channel of retail distribution. The figures reported are to meet the following parameters:
a)Sales revenue is defined as indicated on the sales invoice less sales taxes and freight charges
b)Sales to other retailers or companies that in turn sell the product to consumers are not to be included
c)Sales revenue is not to be adjusted for cash discounts
d)Sales to the U.S. Government are not to be reported
- Total Sales includes the cost of parts, service, warranty, upgrades and refurbishment: Unit Sales + Parts & Service - Credits = Total Sales
- Back Orders - defined as all orders received and not shipped by the close of the reporting period
- Dollars - always stated in the nearest dollar for reporting and analysis. For example:
Actual amount: $7,082.49Reported as: $7,082
Actual amount: $7,082.50Reported as: $7,083
5.Units - reported and analyzed in the exact number of units sold
6.Sold - defined as units having been received by the customer
Miscellaneous
- DEMA and DEMA’s TPA reserve the right to modify the REBI program as deemed necessary for the collection of accurate, timely sales information
ANTITRUST GUIDELINES
In order to best insulate the Association and its members from antitrust liability (of which there are criminal and civil penalties), the following guidelines should be adhered to.
United States Department of Justice and Federal Trade Commission Guidelines:
- The survey must be managed by a third party.
- There must be at least five (3) firms reporting data upon which each disseminated analytical status report item is based.
- No individual firm’s data can represent more that twenty five percent (25%) on a weighted basis of any statistical analysis. Thus, the reason why the REBI Program stresses the importance of commitment to reporting by all.
- All information disseminated is sufficiently aggregated such that it would not allow recipients to identify the prices charged or compensation paid by any particular firm.
Recent Stare Decisus as related to trade associations:
- Participation and entrance into the program should be voluntary.
- Non-members of the Association should be allowed to participate in the Association’s program. A reasonable participation fee may be established that provides for a price differential for non-members that reasonably offset administration and accounting costs.
- Data collected should be strictly limited to past transactions or activities.
- Data should be collected by an independent third-party and not connected in a business relationship with any one reporting firm.
- The confidentiality of an individual firm’s data should be preserved and procedures should be in place to assure this.
- After data has been collected it should be compiled in composite form so as to conceal the identity of any participating company or any specific transactions.
- The analysis reporting should only be distributed in composite form.
- Access to broad, composite analysis, for a reasonable price, should be made available to all those with a valid business reason for the information.