When a manufacturer has a network of authorized dealers in place, it can safely and aggressively remove unauthorized resellers from the Internet. Ultimately, the creation of an authorized dealer network via an Authorized Reseller Program, along with consistent monitoring and enforcement against grey market and unauthorized sales, is an efficient, and effective way to control product distribution and combat online price erosion. Once disruptive unauthorized resellers are removed, a pricing policy allows the manufacturer to further help close the delta between the actual pricing on the internet and the manufacturer’s desired pricing. But again, before a pricing policy can be effective, step one for a manufacturer is to create an authorized reseller program to have control over and transparency in its distribution. A manufacturer may have the greatest pricing policy in the world, but without an authorized reseller program that allows it to identify its authorized versus unauthorized dealers (and against whom to enforce its pricing policy), the policy’s effectiveness will be minimal.
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About ChannelRecon
At ChannelRecon, we provide a full suite of services to ensure your Minimum Advertised Price (MAP) is not only monitored – but enforced – across all SKUS, on every digital platform 24 hours a day, 7 days a week. MAP enforcement is critical to protect your brand’s integrity and seller’s margins, particularly in competitive online marketplaces.