• Clients are expected to pay a 50% deposit before any products are ordered and production can commence. The remaining 50% payment is due within 30 days of the initial deposit.
NET 30 DAY TERMS ONLY FOR CLIENTS “IN GOOD STANDING”
• Once a client has $5,000 or more in billable invoices and complies with these terms for 6 consecutive months, they are deemed to be “in good standing” and are awarded with Net 30 day terms (Net 30 terms) as long as they remain in good standing.
• Should a client be in good standing and need a project done as a Rush Order (jobs that are approved within 14 calendar days of the customer in-hands date), a 25% rush fee will be added to the invoice, should the project be deemed possible to expedite in the shortened time frame.
• If any client’s invoice is not paid within the 30 days, they will no longer be in good standing and will be subject to Late Fees & Penalties.
• If a client has not attained good standing status or is no longer in good standing, they will be expected to pay a 50% deposit before any products are ordered and production can commence. The remaining 50% payment will be due within 30 days of their initial deposit date, or otherwise be subject to Late Fees & Penalties.
• If a client is not in good standing and has a Rush Order to be filled (jobs approved within 14 calendar days of the customer in-hands date), a 25% rush fee will be added to the invoice and they will be expected to pay a 100% deposit should the project be deemed possible to expedite in the shortened time frame.
LATE FEES & PENALTIES
• A monthly 1.5% Finance Charge will be assessed to any invoices that are not paid within the 30 day term.
• At 60 days past due, a second 1.5% Finance Charge will be assessed and compounded to the unpaid invoices. Hi-Line Merchandising reserves the right to hold any of the clients web store settlements and unpaid merchandise within our inventory.
• At 90 days past due, a third 1.5% Finance Charge is assessed and compounded to all unpaid invoices, and Hi-Line Merchandising reserves the right to take the web store down until bills are settled.
• At 120 days past due and continuing, an additional 1.5% monthly Finance Charge is assessed and compounded to all unpaid invoices, and Hi-Line Merchandising reserves the right to take the defaulted payment to a collections agency or an attorney for collection. All fees and costs of collection are the responsibility of client and are in addition to the interest and late fees of 1.5% per month or any part thereof.
WEBSTORE & FULFILLMENT SERVICES
• Hi-Line Merchandising will provide a fully functioning web store that mirrors the client website at no additional up-front cost to the client. Hi-Line Merchandising will store and keep an accurate inventory of all merchandise that is produced by Hi-Line Merchandising on behalf of the client. Webstore clients must have at least 80% of their products produced by Hi-Line Merchandising (excluding any previously produced merchandise or recorded music) in order to be considered a webstore client. Hi-Line Merchandising reserves the right to refuse the sale of an outside production to protect the Hi-Line Merchandising brand, if the item is deemed to be of poor or unsellable quality by Hi-Line management. Before a webstore is built and activated, an agreed upon profit share of all webstore fulfillment by Hi-Line Merchandising will be put into effect.
• All client web stores will be settled with the client on a quarterly basis. If the client has any outstanding invoices, any funds due to the artist will be used to pay outstanding invoices monthly until the invoices are fully paid. Should a client’s invoices be in default for 90 days, any and all merchandise that is being stored in the Hi-Line Merchandising inventory that has not been paid for will become the sole property of Hi-Line Merchandising and sold at retail value to pay off the existing debt. Any Intellectual Property remains the property of the client, however the client forfeits the Intellectual Property of any unpaid products temporarily until said invoices are paid either by client or the retail sale of the products by Hi-Line Merchandising.
• Should either the client or Hi-Line Merchandising choose to terminate the webstore contract, a 60 day notice will be required. Any merchandise on webstore will be commissionable for 60 days from the date of contract termination. Once the 60 Days from contract termination have passed, all merchandise stored at the Hi-Line Merchandising facility must be picked up or delivered to another facility within 10 calendar days or it may be held by Hi-Line Merchandising at the expense of client until all invoices are paid in full. Any shipping costs incurred by Hi-Line Merchandising and any unpaid invoices will be billed to client and are expected to be paid within 30 days. Failure to do so will result in late payment penalties. Failure to adhere to the strict 10 day grace period for removal of merchandise from the Hi-Line Merchandising facility will result in a non-prorated monthly charge of $299 for storage being assessed on day 11.
• Hi-Line Merchandising is responsible for the shipping costs of any client fulfillment to end user customers on behalf of its clients. Hi-Line will assess appropriate shipping and handling fees to each package sent out via webstore orders. Shipping and handling costs of any mailings requested by client outside of webstore orders (such as festival merchandise shipments, comps, fan gifts, donations or samples) will be billed to the client. Should the client decide they would like to use their own shipping account for such mailings, a handling fee will be assessed by Hi-Line Merchandising to cover its operational costs.
EVENT SALES & SETTLEMENTS
• Should Hi-Line Merchandising be the responsible agent at a Special Event for any sales regarding the client’s merchandising, the settlement of funds will be paid to the client within 30 days of the event’s conclusion. If client has any past due invoices, the funds from any Special Events will not be settled with the client until said past due invoices are paid to Hi-Line Merchandising.
• In the event that a client hires Hi-Line Merchandising to either be the responsible agent for sales at a Special Event, or has Hi- Line Merchandising broker another entity to be the responsible agent for sales at a Special Event, the client must pay the responsible party or “Seller” 100% of the negotiated fee at the conclusion of the event. Client agrees to pay any and all venue commissions, seller expenses, merchandising taxes, and fees immediately following the Special Event. Client agrees to also use their own banking for sales unless otherwise discussed with explicit written approval from the Hi-Line Merchandising Accounting Department.
• Shipping costs may be estimated throughout the quoting process, and will be finalized on the client’s invoice after items have shipped.
• Hi-Line Merchandising is responsible for producing orders in a timely fashion and getting the products to client by the supplied Customer In-Hands Date. If the schedule is not adhered to regarding the approval process, Hi-Line Merchandising reserves the right to alter the originally supplied Customer In-Hands Date by email correspondence detailing the alterations in schedule, the reasonable expectations of said products delivery, and if any expedited shipping arrangements can be made at the financial responsibility of the client.
• If a change in the production schedule is deemed not the responsibility of the client, and Hi-Line Merchandising is at fault, Hi-Line Merchandising will do everything in their power to get the products into the customer’s hands by the supplied Customer In-Hands Date. If there is an expedited shipping cost that can make this a possibility, the customer will be charged for the regularly scheduled Ground Shipping rate and Hi-Line Merchandising will pay for the balance of the expedited shipping.
• Should Hi-Line Merchandising and the client not be able to come to a reasonable conclusion on who is at fault for the schedule not being adhered to and thus resulting in a costly shipping expense or missed sales opportunity on behalf of the client, either party is allowed to cancel the job in question for a 50% cancellation fee.
• If client is unhappy with any of the produced merchandise, they must return 100% of the merchandise in order to qualify for a refund. If returning posters, they must clip the bottom right hand corner of the posters that include the numbering as well as a portion of the print and send the corners back for Hi-Line Merchandising to count in. This must be communicated about with the client’s Account Manager within 72 hours of receipt of goods.
• If client is unhappy with any of the produced merchandise due to the fault of a misprint or a manufacturer error, and they have already sold or given away a portion of the job, the client is entitled to a credit towards a newly produced product of the same design for the amount that they have returned only.
• Hi-Line Merchandising takes no responsibility for a client not being able to sell a product that has been produced by Hi-Line Merchandising. In this case, Hi-Line Merchandising will help guide the client with promotional ideas on how to sell the product in question.
• All design fees are $500 unless explicitly stated otherwise and approved by client.
• Hi-Line Merchandising will include all art fees, color separations, and setup charges in an invoice to be paid by client unless otherwise stated. For all poster jobs in which Hi-Line Merchandising charges a flat $10.50 per stock paper print and $12.50 per foil print, Hi-Line Merchandising will cover the $500 design fee. If there is a design fee of more than $500 and the client is being charged a flat rate of $10.50 per stock paper print and $12.50 per foil print, the balance of the design fee after the $500 paid by Hi-Line Merchandising is administered through an invoice to the client.
• If client is not happy with a design that has been started by or brokered through Hi-Line Merchandising and they would like to cancel the design project, a 50% Kill Fee will be administered per design, and invoiced to the client.