MINIMUM ADVERTISED PRICE (“MAP”) POLICY REQUIREMENTS

ZENZII “MAP” products may not be advertised at prices less than ZENZII’s suggested retail price (SRP), which is equal to keystone markup of our current wholesale list price, hereinafter referred to as “MAP”. Retailers are responsible for staying current on MAP products, which are listed on ZENZII’s website. For purposes of this Policy, an “advertisement” shall include any print or electronic media of any kind, including, but not limited to, website pages and banners, social media platforms, emails, blogs, newspapers, magazines, flyers, brochures, posters, postcards, coupons, catalogs, signage visible from inside or outside a retailer’s premises, billboards, television ads, radio ads, and other marketing or promotional materials.



• Minimum SRP = Keystone Pricing = wholesale cost x 2

- Average ZENZII Retail Prices:

- Earring: $28 to $48

- Bracelet: $34 to $54

- Necklace: $38 to $68

- Ring- $24-$38;

• Advertising that in any way suggests or implies a price lower than MAP will be considered a violation of this Policy. The following situations are NOT CONSIDERED violations of MAP Policy: free shipping, sales tax rebates, in-store signage or displays, point of sale signs, hang tags, or markings on products, boxes or other packaging, and/or certain sales involving ZENZII products not designated on the MAP list. The following are some examples of possible policy violations:

• Buy One Get One Promotions (“BOGO”): ZENZII products included in this type of promotion must maintain MAP and be excluded from the discount or free price

• Gift with purchase sales if the ZENZII product is considered the free gift or a reduced price

• Advertisements indicating that a lower price may be found at the checkout stage

• Store or website wide sales that do not exclude ZENZII products??

• Percentage or dollar off instant reward offers and/or coupons??


MINIMUM ADVERTISED PRICE POLICY COMPLIANCE GUIDELINES (3 Steps)

• ZENZII reserves the right to determine and apply consequences if a Retailer is in violation of this Policy, including, but not limited to, excluding the Retailer from participating in corporate programs and promotions, limiting the supply of products, canceling existing orders, refusing new orders, or terminating Retailer’s account. Interpretation and application of this Policy shall at all times be in the sole and absolute discretion of ZENZII.

• First Instance of Non-Compliance:ZENZII will notify Retailer of the violation and place Retailer’s account on Do No Ship (“DNS”) status.. Retailer is required to notify ZENZII once the violation has been fully corrected, at which point the Retailer’s account will remain in DNS status for an additional five (5) business day.

• Second Instance of Non-Compliance: ZENZII will notify Retailer of the violation and place Retailer’s account on DNS status. Retailer is required to notify ZENZII once the violation has been fully corrected, at which point the Retailer’s account will remain in DNS status for an additional twenty (20) business days. Provided there are no further violations during the twenty (20) business day period, the Retailer’s account will be released from DNS status.

• Third Instance of Non-Compliance: ZENZII will notify Retailer of the violation and permanently place Retailer’s account on DNS status. All of the Retailer’s existing orders will be cancelled and the retailer’s account will be permanently deactivated. In the event ZENZII does not apply consequences to a Retailer for a violation of this Policy, this will not constitute a waiver by ZENZII of any rights or remedies, all of which are expressly reserved, or waive its right to take any action it deems necessary in the future for any violation of this Policy. No Retailer or third party shall have the right to force ZENZII to enforce this Policy against any other person or entity, including another Retailer.

• ZENZII will not solicit evidence, but will accept information from Retailers, regarding possible non-compliance of the Policy by another Retailer, provided such information is addressed to the ZENZII MAP Administrator. ZENZII will not share with any Retailer information about its decisions relating to any other Retailer. Nothing in this Policy constitutes an agreement between ZENZII and any Retailer that such Retailer will comply with this Policy.

• No employee or sales representative of ZENZII has any authority to modify this Policy or discuss any actual or alleged violation of this Policy by a Retailer with the Retailer. Any questions about this Policy should be in writing and directed to ZENZII MAP Administrator.


Pricing Strategies

Standard Pricing Formula: = Retail Price = [(Cost of item) ÷ (100 - markup percentage)] x 100

Keystone Pricing: Simple option of doubling price

• Pros: The keystone pricing strategy works as a quick-and-easy rule of thumb that ensures an ample profit margin.

• Cons: Depending on the availability and the demand for a particular product, it might be unreasonable for a retailer to markup a product that high.



Bundle Pricing: helps move items but may be detrimental for items you want to sell individually at a later time.



Discounting: For off loading slow sellers and out-of- season stock

• Pros: The discount pricing strategy is effective for attracting a larger amount of foot traffic to your store and getting rid of out-of-season or old inventory.

• Cons: If used too often, you may be viewed as a bargain retailer, which could deter consumers from purchasing products at full prices.



Loss-Leading Pricing: Increasing the average transaction value

Lowering the price on one item to upsell buyers with complimentary items. While the original item might be sold at a loss, the retailer benefits from the other products customers purchase while in-store.

• Pros: This tactic can work wonders for retailers. Encouraging shoppers to buy multiple items in a single transaction not only boosts overall sales per customer but can cover any profit loss from cutting the price on the original product.

• Cons: Similar to the effect of using discount pricing too often, when you overuse loss-leading prices, customers come to expect bargains and will be hesitant to pay the full retail price.