Policies & Procedures

Credit Policies/Account Set-Up

New Customers Seeking Credit Terms
For accounts that qualify, Somerset’s standard credit terms are Net 30. To apply for credit terms, the customer must supply:

1. Signed Credit Application, with references attached
2. Opening order, listing price per item, order total and credit terms being sought
3. Vendor Agreement, if available

Once all necessary information is received, a credit check and account set-up will take place within 10 business days. Orders will be entered and shipped within 72 hours of successful credit check and account set-up. Customers will be contacted if they are set-up with terms other than Net 30. Invoices will be mailed out the next business day after the order has shipped, and will indicate payment due date. An account does not own the product until the corresponding invoice has been paid.

Please note that a customer’s credit terms may be reviewed and re-evaluated at any point.

New Customers Preferring to Prepay for Orders
A customer may choose to prepay for orders, forgoing credit terms. To become a prepay account, the customer must supply:

1. Signed Prepayment Agreement, with valid credit card listed (VISA, MC, AMEX--US only)
2. Opening order, listing price per item and order total

Once all necessary information is received, the Prepayment Agreement will be processed within 48 hours. By completing and signing the Prepayment Agreement, the customer authorizes Somerset to use the listed credit card for prepaid orders going-forward. Once set-up is complete, Somerset enters the order to ship within 72 hours. In the event that a Prepayment Agreement cannot be signed, Somerset will accept a signed purchase order with the credit card number and expiry date listed directly on the order. Until a Prepayment Agreement is submitted, each and every subsequent order will have to include a signature, credit card number and expiry date for the order to be processed.

Credit Notes
After a board exchange, the retailer may mark down items and sell-off deleted CDs, or the deleted CDs may be returned to Somerset Entertainment for a credit. The only product authorized for return are the CDs and expired music chip (MMC) listed on the Return Authorization Form that accompanies every board exchange order. Credit is posted directly to the customer’s account.

Damages and Mis-shipments
Somerset must be notified of any product that arrived damaged, defective or was mis- or short-shipped within 48 hours of receiving the invoice. A credit, if applicable, is posted directly to the customer’s account. A copy of an invoice or statement is available upon request.

Shipping Lead-times

Standard Orders
Orders that meet the following criteria are considered “standard orders”:
• less than 200 lbs
• less than 15 boxes

Typically standard orders contain only replenishment product and/or board exchange material and, as such, are shipped via FedEx Ground.

The following reflects approximate delivery lead times for a standard order in the United States:
• 3-days – CT, DC, DE, IL, IN, MA, MD, ME, MI, NH, NJ, NY, OH, PA, RI, VA, VT, WI, WV
• 4-days – AL, AR, GA, IA, KY, LA, MO, MS, NC, SC, TN
• 5-days – CO, FL, KS, MN, MT, ND, NE, NM, OK, SD, TX, UT, WY
• 6-days – AZ, CA, ID, NV, OR, PR, WA
• 8-days – AK, HI

Large Orders
Larger orders – those with larger dimensions or weight than a standard order, are typically shipped via the LTL carrier, Yellow/Roadway. Generally speaking, one should add 1 or 2 days to the above noted lead times for delivery of such items, including, but not limited to, interactive displays and its product. More often than not, the item(s) will be delivered on a wooden skid.

Kindly advise Somerset Customer Service if the ship-to location has any special shipping-related needs or a specific Routing Guide.

Music Update Procedure

What is a music update?
• A refreshment of product that happens up to 4 times per year, where a certain number of titles are deleted from the program, to be replaced with new releases.

Why do a music update?
• Performing a music update adds topical, new product to your line-up and capitalizes on profitable seasonal opportunities (like Christmas) while providing relief from under-performing titles. Line-ups are offered 3–4 times per year, usually in January, April and July for “everyday” music, and in October for seasonal.
• Returning customers will notice new music and spend more time at the interactive unit, leading to increased music sales.
• Store staff is glad to have fresh music in their workspace — changing titles creates a renewed enthusiasm in listening to and selling music.
• Deleted product will be authorized for return and a credit on your account depending on the program chosen. Deleted titles will be announced 4–6 weeks before the new line-ups begin shipping.

How can I get a music update?
• Review what music line-ups are available for the coming season in this booklet.
• Write your music update order either with your local Sales Representative or your Somerset Territory Manager.
• Begin selling down the titles that will become your deleted titles once you receive the new music line-up.
• In the update order, you will receive the full fill of the new product, a graphic card, music chip (MMC) and return authorization (RA) form listing the deleted titles.

How do I send my deleted product back for a return?
1. Locate the RA form in the music update shipment.
2. Write the quantity of each item authorized for return in the correct area on the form.
3. Ensure that CDs are being returned in saleable condition. A 15% restocking fee will apply to any product sent back in unsaleable condition. This is defined as any product received with price stickers, glue residue from price stickers, broken cases or product that in any way requires repackaging.
4. Place a copy of the RA form in the box being returned and keep a copy for yourself.
5. Clearly write the RA# (printed on the top-right corner of the RA form) on each box being sent back. Somerset Entertainment cannot issue credit if the RA# is not clearly identifiable.
6. Be sure to record your shipment tracking number and keep for your records. Somerset Entertainment is not responsible for shipping charges or lost packages.
7. Send returns back to the following address ONLY (as listed on your RA form):

In Canada: Somerset Entertainment                              In the U.S.: NEW Somerset Entertainment
                 321 Parkhurst Square                                                  c/o BUFFALO X DOCK
                 Unit B                                                                        1800 Broadway Street, Bldg 4B
                 Brampton, ON L6T 5H5                                                 Buffalo, NY 14212

Important Notes:
• Retailers must also return the expired music chip (MMC) to Somerset in order to receive the $25 MMC credit. Please return the MMC in the same box as your deleted product return.
• No credit will be given for unauthorized items. Unauthorized product will be received, but no credit will be issued. Unauthorized product will not be returned to sender.

Custom Line-up Policy

In addition to pre-selected music line-ups, Somerset Entertainment also offers the option of choosing your own custom assortment of albums for your interactive unit. The cost for this process is a one-time charge of $200. This charge appears as a line item on the sales order and is included in the total.

Custom Line-up Process
• Begin with a minimum 6-month trial with a standard, pre-selected music line-up. At best, this initial trial period might convince you a custom line-up is not necessary (thus avoiding a $200 charge). At worst, the trial shows you which titles are your clear best sellers and you may choose to keep those titles on your custom line-up.
• If you are convinced a custom line-up is right for you, discuss a list of albums with your local Sales Representative or your Somerset Territory Manager. Please note that Somerset’s Marketing Department MUST review and approve ALL custom line-ups to verify that all of the albums are available for sale in your territory. Upon final approval, allow a minimum of 4 weeks for Somerset to produce a custom line-up.
• Once the initial $200 fee has been paid, a line-up change can be made once per year. Please ensure that you limit your additions and Platinum Legends® titles to the following quantities:

If you choose not to change your line-up for over one calendar year, the number of Platinum Legends and new addition allowances will not increase.

Important Notes:
• Conversion from a regular gift line-up to a custom line-up will still result in a fee of $200. Orders will automatically include a full fill of each title, even if the title already appears on your original line-up.
• Somerset Entertainment strictly adheres to these polices. If your line-up is not approved, you will be contacted by your Territory Manager to make revisions and the status of your order will be temporarily placed on hold.