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Knowledge Base

Customer Purchasing Program FAQ - Points and Discounts (71389)

Last Updated: 8/27/2019Categories: InformationalTotal Views: 11240Language:
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This article provides information about the points and discounts of VMware's Customer Purchasing Program.

Solution

What is a Customer Purchasing Program Point?
VMware has established a point value for each eligible VMware product. One point is roughly equal to $100 USD. The point value of a given product is the same across all geographies and does not change based on the currency of purchase. The point to dollar ratio may vary over time by SKU.

Do Customer Purchasing Program points accumulate?
No, points will not accumulate from the Customer Purchasing Program.

What are the Customer Purchasing Program discount tiers?
There are three Customer Purchasing Program discount tiers that range from 5-10% for qualifying orders.
For example, a customer placing an order with 250–599 total points is eligible for a 5 percent discount on license products. Customer placing an order with 600-999 total points, is eligible for a 7 percent discount on license products. Similarly, the customer placing an order with 1000+ points, is eligible for a 10 percent discount on license products.
The chart represents the customer purchasing program discount tiers.

Note: Discounts are calculated off VMware published, then current, local MSRP prices.

What is the relationship between points and discounts?
The total point value for the combination of products and quantities on a customer’s purchase order determines the eligible Customer Purchasing Program discount tier for that order. As the total increases, the eligible discount tier may also increase.

What is the basis for calculating Customer Purchasing Program discounts?
Discounts are calculated off VMware’s published, then current, local MSRP prices. VMware MSRP prices can be found on www.vmware.com.

Once a customer qualifies for a higher discount level, can the customer purchase at that level with the subsequent order?
No. Since Customer Purchasing Program do not accumulate points, customer cannot use the discount derived from the previous order on the subsequent order.

What happens if a Customer Purchasing Program member submits an initial order that is less than 250 points?
A customer who submits an initial order worth less than 250 points will not qualify for a Customer Purchasing Program discount. Only when a customer submits a PO worth 250 points or more will points will translate into Customer Purchasing Program discount.

Can my customer combine multiple orders (a “split order”) together to qualify for a Customer Purchasing Program discount?
Yes, qualifying Customer Purchasing Program orders are allowed to be split into multiple orders. If the order is split into multiple orders that would not have independently qualified as an initial Customer Purchasing Program order, customers can still qualify for a Customer Purchasing Program discount if the following requirements are met:

The first split order submitted to VMware must reference how many split orders will follow

Each subsequent split order must include the first order’s PO number

The orders must be placed by the same Distributor and Partner for the same customer or membership

The split orders must be dated and submitted to VMware within 2 weeks of the first order

Are Support & Subscription (SnS) products eligible for Customer Purchasing Program discounts?
No, only license products are eligible for Customer Purchasing Program discounts. SnS products count towards customer qualification in Customer Purchasing Program discount.

Can I combine VPP discount SKUs and Customer Purchasing Program discount SKUs on the same order?
No, VPP discount SKUs and Customer Purchasing Program discount SKUs cannot be on the same order.

Can an organization’s affiliates share Customer Purchasing Program discounts?
No, affiliates can earn their own discounts based on their purchase volumes.

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