Inline Plastics Playbook v2 JUL-21

13.3 NCM

When setting up a new POD price for a specific end user (regardless of the price adjustment mechanism), we have to fill out the ‘NCM’. NCM stands for Net Contribution Margin which we use to determine the price level for a specific piece of business. It is important to note that NCM only accounts for material costs, rebates, commissions and freight, and does not represent our profit margin! It is however our tool to determine pricing for POD products. NCM allows for certain levels of approval. When NCM gets too low, there is a hierarchy of approval Managers (see colored graphic on the right of this page). The document is called ‘All Products NCM ROI worksheet’ and it is located in Salesforce (Files/Libraries/Product Documentation (Misc)). This document is updated once every month – and released on the 15th.

Key inputs needed to build an NCM are: - Item - Price - Annual cases

S A L E S P L AY B O O K

Optional inputs: - Rebates, commission, and freight – these are set in the default NCMWorksheet as 8%, 4.5% and $2 respectively. Customer specific values are pre-programmed in the document and are pulled up if the Customer Account number is entered. The NCM Worksheet offers multiple tabs that help navigate through pricing questions and processes and was built in close collaboration with the Sales Team. Everyone receives a training on how to use the NCMWorksheet during Marketing training as well as from their respective Sales Directors. Should there be any further questions, please feel free to reach out to the Marketing Team and the Pricing Manager will walk you thorough further details.

CONFIDENTIAL INFORMATION – For Internal Use Only