To our valued Warehouse Distributors:
Over the years, we have striven to ensure the success of the 3-tier distribution chain, as our success ultimately relies on the success of our resellers. We believe that it is critical for us to work together in order to strengthen both of our positions in the performance aftermarket. This year we will be implementing various sales and marketing programs designed to retain brand value and a healthy distribution channel; most notable is the Unilateral Pricing Policy.
The Unilateral Pricing Policy (UPP) sets a Minimum Retail Price (MRP) for all Aeromotive products. This policy is designed to curb price slashing among Aeromotive retailers and eliminate unlawful counterfeit product sales, thus enabling our Resellers to remain profitable in this highly competitive business environment. In order to remain in good standing Aeromotive Resellers must NOT advertise or sell Aeromotive products below MRP.
Aeromotive will be utilizing the services of the Brand Protection Agency (BPA) to administer and enforce the UPP. They will utilize their proprietary software to search websites for violations, send notifications of violations, and track the number of violations. The Brand Protection Agency is very well known in the automotive aftermarket and consumer goods industries.
Violations or refusal to participate in the Aeromotive UPP could result in loss of (but not limited to):
- Annual advertising cooperative funds
- Privilege to use Aeromotive intellectual properties
- Privilege of being listed on Aeromotive dealer locator
- Ability to purchase Aeromotive products
The Unilateral Pricing Policy will become effective August 1, 2017. Please review y o u r pricing and ensure that it conforms with the MRP by then as the UPP will be strictly enforced. You will be receiving notices for violations during a 30 day courtesy period.
Effective October 1, 2017, the MRP on almost 200 products will increase between 1 and 3.3%. This is located in the second column of the MRP Price Schedule to provide ample time to modify your pricing programs.
Thank you for your understanding. We are confident that if we work together on this matter, we will all succeed. We look forward to finishing 2017 in a vertical climb and are more enthusiastic than ever about our continued partnership and future growth.
Sincerely, Steve Matusek