Commercial rules, pricing logic, discounts, payment discipline, and partnership principles
1) Purpose and scope
This document defines the commercial rules applied by La Genovese to all export partners (distributors, importers, and resellers).
Its purpose is to ensure clarity, consistency, transparency, and long-term sustainability for both parties.
2) Partnership positioning
La Genovese operates as a strategic long-term partner, not as a reactive supplier.
We do not build relationships on short-term price tactics. We build them on:
- stable rules
- transparent logic
- shared responsibility
- consistent brand positioning
Partners who align with this framework benefit from a more solid cooperation over time.
3) Price list as reference
Our world-wide distributor price list is the commercial reference and represents:
- the real value of the product and brand
- a sustainable economic structure for production and service continuity
- a foundation for the distributor to build their own pricing structure in a coherent way
The price list is not designed to be continuously renegotiated order by order.
4) How La Genovese builds prices
La Genovese does not price coffee based on daily market movements.
Our pricing and discount decisions are based on:
- the average purchase price of green coffee in stock (inventory)
- production needs
- supply planning
- cash flow discipline
We typically manage inventory with the objective of maintaining operational stock coverage (e.g., multi-month continuity), to ensure supply stability and consistent service.
Because of this, futures or spot charts are not a direct pricing trigger. What matters is the real average cost of available stock, which depends on when and how purchases were executed.
5) Spot discount policy
La Genovese may apply spot discounts under a transparent rule:
Spot discounts are applied if and only if we are able to purchase green coffee under conditions that reduce our average purchase cost and create real margin space.
- If spot purchasing opportunities exist, we share the benefit through the maximum possible spot discount
- If not, prices remain unchanged (not artificially discounted)
Spot discounts are:
- discretionary (not automatic)
- linked to real purchasing opportunities
- not guaranteed for future order
We do not apply artificial discounts, inflated prices followed by discounts, or “discounts by default”.
6) Price list updates and planning
When a new price list is announced with an effective date, the logic is the following:
- Orders shipped before the effective date are invoiced according to the current list (and existing agreements), because they are based on already purchased stock
- The new list is defined according to expected average market conditions for the relevant period and strategic sustainability targets.
7) Payment discipline and cash flow principle
Cash flow management is a core part of our purchasing strategy.
Respecting agreed payment terms is not a formality: it directly impacts our ability to buy strategically when opportunities arise, which in turn impacts the possibility of spot discounts.
Therefore:
- payment terms must be respected as agreed
- persistent delays may lead to stricter terms, reduced flexibility, or order suspension
- no commercial support mechanism can substitute payment discipline
8) Customized products and private label
For customized products and private label items (not included in the general list), pricing reflects:
- dedicated raw materials and specific processes
- lower operational flexibility compared to standard products
- higher planning and supply commitment
For these products:
- the agreed dedicated price is the reference
- spot discounts follow the same rule (only if average purchase cost is reduced)
- custom projects must remain sustainable for both parties to be protected long-term
9) Exceptional agreements and dedicated price lists
If some partners operate under exceptional commercial conditions with a dedicated price list:
- the dedicated list is the reference
- the same spot discount rule applies (only when real purchasing opportunities exist)
- exceptional conditions require full alignment and mutual respect of the framework, especially payment discipline
10) Communication and trust principle
Our framework requires trust and clarity:
- We communicate the rules upfront
- We apply the same logic consistently across markets
- We share benefits when real conditions allow it
If a partner does not trust the pricing method and the transparency of this framework, cooperation will naturally become inefficient and conflict-driven. In such cases, it is better to reassess the partnership.
11) Order confirmation and execution
Orders are executed only after:
- email confirmation of quantities and items
- confirmation of agreed prices/discounts applicable to the specific order
- fulfillment of payment conditions (advance or terms as agreed)
Special requirements (e.g., labels/stickers, packaging constraints, market compliance details) must be written in the customer’s order request.
12) Transport, packing, and delivery procedure
This procedure applies to all orders, regardless of whether transport is arranged by the client or by La Genovese.
Packing and pre-shipment control:
- Once the order has been assembled in the warehouse, all pallets are photographed before wrapping.
- Pallets are photographed again after wrapping, with La Genovese branded cellophane applied on all exposed sides, including the top.
- A packing list is compiled for each shipment, recording the net weight and gross weight of every product line, including the weight of the wooden pallet.
- Each pallet is weighed and cross-checked against the packing list. Any discrepancy is investigated before the shipment is released.
Documentation sent to the client:
Before or at the time of shipment, the client receives by email:
- The transport document (DDT / CMR)
- The packing list with weights per pallet and per product line
- Photographs of all pallets before and after wrapping
Signature with reservation — mandatory requirement:
All copies of the transport document travelling with the goods carry a clearly visible label with the instruction to sign with reservation (subject to inspection).
The recipient is required to sign the transport document with reservation at the time of delivery, regardless of the apparent integrity of the pallets.
In the event of any visible or suspected anomaly at the time of delivery (re-wrapped pallet, non-original tape, pallet appearing lighter than expected), the recipient must:
- Sign the transport document with reservation, noting the anomaly observed
- Photograph the pallet before opening it
- Contact La Genovese and the carrier immediately
Limitation of liability:
La Genovese does not accept responsibility for missing or damaged goods if the transport document has been signed without reservation at the time of delivery.
A signature without reservation constitutes formal acceptance of the shipment as received in full and in good condition. Without documented reservation, no claim can be pursued against the carrier or the sender.
Claims:
Claims for missing or damaged goods must be submitted in writing within 5 business days of the delivery date, attaching:
- A copy of the transport document signed with reservation
- Photographs of the goods and packaging as received
- A detailed description of the anomaly
Claims submitted without a transport document signed with reservation will not be accepted.
Marketing Support & Merchandising Policy
1) Purpose of the marketing support
La Genovese provides marketing support to its distributors with the objective of:
- increasing brand visibility,
- supporting sell-out activities,
- strengthening brand presence at point of sale.
Marketing support is designed as a commercial and marketing tool, not as a financial incentive.
2) Annual marketing support budget
- The annual marketing support budget is set at 10% of the yearly coffee turnover.
- This budget is intended exclusively for marketing and visibility activities (e.g. cups, espresso cups, signage, aprons, POS materials).
The 10% marketing support is not a discount and cannot be interpreted as a cash-back or year-end rebate.
3) Activation and use of the budget
The marketing support budget must be actively used through:
- requests for merchandising and POS materials,
- concrete visibility actions in the market.
Distributors are responsible for requesting the materials and deploying them to generate real brand visibility.
Unused budget:
- cannot be converted into invoice discounts, credit notes, or financial compensation
- does not carry over automatically to subsequent years unless explicitly agreed in advance
4) Merchandising price list
Until 2025, La Genovese applied a merchandising price list close to production cost, as a deliberate support to partners.
Starting from 2026, the merchandising/POS price list is adjusted to realistic market-based prices.
This change is necessary to ensure the economic sustainability of the marketing support system.
5) Commercial discounts on coffee
Any commercial or spot discounts applied to coffee orders:
- are granted at La Genovese’s discretion,
- depend on market conditions, volumes, and timing,
- represent a separate commercial effort.
Such discounts must be considered a commercial support, not an automatic or guaranteed condition.
Commercial discounts do not replace and do not increase the annual marketing support budget.
6) Transparency and annual closing
At year-end, the total marketing support is calculated as:
- 10% of coffee turnover, minus
- the value of merchandising supplied, minus
- any commercial discounts already granted during the year (if applicable)
This ensures a transparent, verifiable, and consistent closing for both parties.
7) Partnership principle
La Genovese believes that a healthy partnership requires:
- clarity of rules,
- transparency in calculations,
- sustainability for both parties.
This policy is designed to protect long-term cooperation, brand value, and consistent service quality across all export markets.
Download the policy
Download the Export Sales Policy in PDF format — available in English and French: