Employee Purchase for a Gift: How do you Handle Discounts?

So here it is—my employees are ordering items for their family from Quality Gold, Stuller, etc—little items that the store doesn’t carry. Now I obviously don’t want to make money off of them so I wrote up an employee form awhile back—take a look below. One of my staff members came up to me and wasn’t too happy; said that items purchased for their family members should also be 20% above cost and 10% for management. I feel I’m pretty open to their ideas/wants/and opinions so I thought I’d ask you all—Is that right? So if they buy gifts for their family from a catalog under the store’s account should they be allowed to purchase the item at the same price as if it were for them? What about their spouses? Their spouse wants to buy an item for his or her sister? What’s your policy on that? How do you figure retail—use the catalog? They buy an item for $5 bucks from QGC and the item retails for triple key in the catalog—then you take 30% off the price? How do you all handle employees purchasing for nieces, nephews, cousins, etc? What about their spouses purchasing for their family members—remember these are items not in stock?

Employee Purchase Discount Request Form

As an employee of Guliani’s Fine Jewelry, I am interested in purchasing the following item/s at a discount as determined by and approved by Shanu S. Guliani:

The items will be used for: (Check One) In the case of multiple items, determine use with an A, B, or C under in the Use Code for each item. Attach items of interest in plastic job bag and paper clip to this form. Include a copy of the original invoice with your submittal.

A. ( )   Personal Use – an employee’s personal use is determined to be actually wearing the items they are purchasing for themselves as well as having full possession of the jewelry (Cost plus 20%. Cost plus 10% is reserved for management).

B. ( )   Purchase for Gift - to be given by Guliani’s Fine Jewelry employee (30% off retail).

C. ( ) Purchase is to made by employee’s family member (25% off retail).

The item/s will be paid for: (Check One) In the case of multiple items, determine your payment method with a 1 or 2, under in the Pay Code for each item.

1. (   ) In Full upon possession of item and before item is removed from the store       

(A factor to be considered for maximum discount).

2. (   ) On Lay-away to be paid off within 3 months of this date, with 25% down paid after approval.

Today’s date _______________________

I sign that the information is true and correct ____________________________________

Approved By: _________________     Date: _________________