Serial entrepreneur with an industrial psychology education and over 23 years of creating, consulting, and operating businesses. Loves mountain biking, snowboarding, and surfing.
Sounds like a loaded question doesn’t it? The fact is, as much as we believe in pricing policies, they are not a good solution for every brand. Most of the time they are great, but if one of your primary competitive advantages is price, then forcing sellers to raise their advertised prices might only serve to decrease sales. Most of the time when we work with a brand we help them grow, by expanding into more and better wholesale distributors, and expanding their dealer networks. This in turn creates more awareness of the brand, which again increases sales.
But a solid enforcement plan is not enough to ensure growth in brand value. There are many other things that go into it. There has to be marketing and research and development as well. “The more you pay, the more it’s worth” might be a great song lyric, but it is definitely not always true.
Even if you do decide a pricing program would be good for your brands there are a few other questions you should ask yourself. First and foremost is this; “Do you have the stomach to stop selling to a good customer”. If you are going to enforce a MAP Policy you need to be willing to cut anyone off. We have found that the manufacturer who is willing to cut off anyone is the one who actually has to cut off the least number of people. It is like the strict parent. Kids will push the boundries if they know they can get away with it, but if they are risking getting a whipping they are much more likely to stay imn line. Also consider this, is a dealer really a good customer if they’re undermining your efforts to maintain a fair market for the rest of your dealers?! Support the customers who abide by your policies, pay their bills and contribute to your overall growth. Rest assured consumers will find and buy your products regardless of the source.
Brand integrity, customer service and continuing to bring viable products to market isn’t easy or inexpensive but it’s what you’ve built your business on. Don’t allow your work to be degraded by sellers who are only interested in a quick buck and could care less about how their actions undermine your hard work.
Let's face it, as a business owner, you want to maintain control over your pricing strategy and protect your profit margins. That's where a Minimum Advertised Pricing (MAP) policy comes in handy. It's like having a bouncer at the door of your nightclub, making sure everyone is playing by the rules. ...Read More
In today's dynamic business climate, price changes have taken on much more importance. Freight and raw material costs are rising quickly and price changes need to happen quickly as well. Fortunately, we make these price changes easy for our clients. It's as simple as sending us an email with the new file and we make it happen. No need to log into a portal and format your file to fit etc. Just send us your price file to ensure enforcement is in sync with your internal price notifications. In addition, we can make sure your new price file is distributed to all your resellers, even the ones that you do not have direct contact with. We can notify all the Amazon and eBay sellers in one easy email making your life easier and also heading off future advertised price violation issues. IMPORTANT: Do not forget to update your data services as well. Updating one and not the other is a recipe for a MAP violation nightmare." Send your price files to; firstname.lastname@example.org ...Read More
When trying to grow a brand it is normal to think more distribution is better. Manufacturers are pumped when they get large enough to make it into the top-tier wholesale distributors. Sales are growing and everyone is happy. During this growth phase, it is hard to be aware of the problems that might lurk just around the corner. With growth in distribution comes growth in unauthorized sellers. There are many “underwear entrepreneurs” who get a data feed from a WD and list all your products at rock-bottom prices on Amazon and eBay. Who are these guys?! ...Read More
Besides monitoring and MAP policy enforcement we also develop a healthy relationship with your compliant sellers.