Section 553-2-III - Agency Liquor Store Profit MarginA.Minimum Discounts.Agency liquor stores must purchase spirits products from the State. The State will sell spirits products to agency liquor stores at wholesale prices (discount off retail prices) based on the retail prices of spirits products as follows: 1. For spirits products at a retail price of $24.99 or less, the discount rate is twelve percent (12%) of the list price; and2. For spirits products at a retail price of $25.00 or more, the discount rate is fourteen percent (14%) of the list price.B.Growth Incentive. BABLO seeks the support of agency liquor stores to achieve its volume recovery/growth objective. To reward this support, the Bureau will increase Minimum Discounts as follows: 1. To be eligible for a growth incentive, the growth of nine (9) liter cases must meet or exceed a minimum total growth rate of 4.5% (four and 1/2 percent). Growth of less than 4.5% (four and 1/2 percent) over the previous year would not produce a discount increase.2. The growth achieved in any year will increase the discount rate starting the following year. FY15 is year one and performance that year would earn the discount rate increase, if achieved, starting in FY16.3. The discount rate increase would increase as follows for growth: a. For growth of nine (9) liter cases of 4.5% (four and 1/2 percent), the discount rate increases by 0.75% (3/4 of one percent);b. For growth of nine (9) liter cases of 5% (five percent), the discount rate increases by 1.00% (one percent);c. For growth of nine (9) liter cases of 5.5% (five and 1/2 percent), the discount rate increases by 1.75% (one and 3/4 percent); ord. For growth of nine (9) liter cases of 6.0% (six), the discount rate increases by 2.50% (two and 1/2 percent).4. If the gross profit of the spirits business increases more than 10% in any year, the discount rate will be increased by 1.00%. This increase is in addition to the increase described in B.3 of this subparagraph.5. All discount increases achieved as described in this section would continue each year but would be capped when the total discount rate reaches eighteen percent (18%).6. Once the discount rate is increased pursuant to subparagraph B.3 and/or B.4, it would not be decreased by the Bureau absent a change in rule or statute.7. Growth incentives apply to all agency liquor stores equally.18- 553 C.M.R. ch. 2, § III