Given that there are costs in running the authenticity assurance scheme, and developing the Ngāi Tahu Pounamu brand, it is necessary to charge a Cost Recovery Levy to those who are licensed to purchase and manufacture Ngāi Tahu Pounamu and use its trademark. The licensing fees are charged based on the wholesale price, or recommended retail price of the manufactured items uploaded on the Ngāi Tahu Pounamu website. The current rate of Cost Recovery Levy is as follows:
- 15% of an item's wholesale price; or
- 7.5% of an item's recommended retail price.
Our marketing and branding research suggests that certified manufactured pounamu products should achieve between 15% and 30% market premiums, so any cost recovery levy paid should be more than compensated for through the elevation in the value of manufactured products.
How the licensing cost recovery levy is charged
As outlined above, when pictures of manufactured items are uploaded onto the website, the carver enters either the recommended retail price of the item, or the wholesale price of the item. A wholesale price for the item is entered if the carver is also selling the product to a retailer. If the carver is retailing the product themselves, then a retail price needs to be entered. It is from these amounts that the Cost Recovery Levy is calculated.
The example at right from the website demonstrates how this works. In this example it can be seen that the wholesale price for the product is $30. The Cost Recovery Levy on this wholesale price would be 15% or $4.50.