Minimum Advertised Pricing
Your MAP to success.
Dear Retail Partner:
It’s no secret we have struggled with our MAP policy. We have enjoyed a long and very good relationship with our retail partners and want that to continue. Recently we have been getting more and more feedback that there is a strong interest in having a MAP policy that is responsibly managed throughout the channel. So, we locked ourselves in a room for a few days, with bathroom breaks of course, talked to many of our storefront retailers, our online retailers, our distributors, and have come up with a program we hope will work for all of our channel partners.
A win-win-win approach.
MAP Definition – according to WikiAnswer…
Minimum Advertised Price (MAP) is the practice whereby a manufacturer and its distributors agree that the latter’s resellers will advertise the former’s product at certain prices, at or above a price floor (minimum advertised price)…MAP Pricing enhances customer loyalty, product image and profits. Minimum Advertised Price or (MAP) requirements are common in the marketing world. Manufacturers often assign a minimum price point below which a retailer cannot advertise certain products. MAP pricing ensures that their product maintains a certain level of exclusivity and doesn’t become known as a cheap product. A Minimum Advertised Price (MAP) Policy alleviates brand degradation and reinforces the advantages of products in the areas of quality, design, warranty, and service delivered by the manufacturer. It will protect stocking dealers from “unfair” online competition and makes sure that everyone makes money.
To MAP or not to MAP
Our goal is to contribute to all of your success in these tough times. When you’re successful, we’re successful. We have worked hard to come up with new products our customers will love and you can make a profit from. And we have BIG plans for 2011 that we will be sharing with all of you this quarter. But to develop exciting new products and launch innovative new programs that will drive customers into your store, we need your help maintaining our high-quality image and product value in the market. We believe a MAP policy gets us on the right path, or you can think of it as roadMAP to success – pun intended. We have made the decision to MAP.
We believe that our end-users are willing to pay a fair and reasonable price for quality products. Hyalogic has adopted the following policy: Hyalogic recommends that our products be sold or offered to be sold by our dealers at prices no lower than 20% off our suggested retail price (MSRP ) as defined in our standard price list. Hyalogic reserves the right to refuse shipment to any dealer who sells or offers to sell Hyalogic products at prices lower than those outlined. As with any policy, it needs to be applied equally and fairly across all of our partners. We have made this policy decision to preserve the reputation of the Hyalogic brand in a highly competitive marketplace. We do not ask for, and will not seek to obtain, any form of assurance from you for your compliance with this policy. In addition, we discourage the urge to become a tattle-tale and will not accept reports from any of our dealers concerning the pricing behavior of other dealers. We will know who you are.
We sincerely hope this program works for everyone and benefits our customers. For those of you who wanted this sooner, thanks for your patience. For those of you who didn’t want it at all, we hope you’ll give the program a chance for success. To all of you who have been great supporters of Hyalogic and our products over the years, a sincere thank you from all of us here at Hyalogic for your loyalty, your support and your friendship.
Warmest regards,
Darren Landis |
Mark Ganaban |
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