What to Do when Product Prices Change

Image about pricing

Image about pricingPrices fluctuate because of the cost of import and export, fuel, production, taxes, and other factors. It’s understandable that you have to increase the price of your products, so you gain profit instead of just breaking even. When you change the prices, however, you want every distributor to follow suit.

Here’s what to do to keep things organized and prices consistent:

Set up a MAP Policy

Your MAP pricing policy will determine the minimum price allowable for your distributors. Your authorized distributors should comply with the policy if they want to keep their partnership with you. Reiterate the things that come with the partnership, so they’ll know what they will lose a few dollars of extra profit. Now is also an excellent time to strengthen your relationship with your authorized distributors by giving them access to limited edition products.

Sanction Those Who Don’t Comply

While you’re rewarding your authorized distributors for respecting your brand, you can’t just ignore those who don’t follow the policy. Remember, ignoring them won’t hurt them. They are still selling your products at a lower price. What you should do is strip them of their distribution license and do not give them access to your new releases. While the implementation may seem hard, considering that anyone can sell online, you can post a notice reminding customers to only buy from authorized sellers.

The reputation of your brand is at stake if you ignore these inconsistencies. Product quality is compromised, and you’re also risking the brand authenticity. If items are selling for way too low, anyone can sell counterfeit products for the same price and fool your customers. All these will reflect poorly on you, so don’t wait for that to happen.

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