Posts Tagged ‘Crystal Ashby’

Vendors That Compete Against Their Own Dealers

October 18, 2009

BrokenChainWhy has the industry allowed so many vendors to compete against their own dealers through online sales? Shouldn’t everyone respect the supply channel? Or do some vendors have legitimate reasons for selling directly?

Two years ago, I was attending an annual meeting of MIC members when a guest speaker told the 200 assembled vendors that they all should be selling online. “The most important way for the aftermarket to sell is the Internet,” the market analyst said. “Companies used to be worried about how it would affect their retail establishments. That way of thinking has gone by the wayside.”

This comment surprised me. When the analyst asked for questions, I asked whether he believed motorcycle dealers in particular no longer cared whether their suppliers sold directly. He gave a quick affirmative and left the stage.

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The Good and Bad of MAP Policies

October 9, 2009

Low_Price_Guarantee[1]As PG&A inventories remain bloated, the dangers of heavy discounting mount. Brands take a wallop once their suggested retail prices become a running joke on eBay. To combat this, we’ve long had minimum advertised pricing (MAP) policies.

But dealers have mixed feelings about these policies. Some dealers don’t like them, period. The market should dictate prices, they say. Most dealers like the idea of MAP pricing, but they hate the policies of specific vendors or distributors. Or, perhaps more often, they resent policies that aren’t strictly enforced.

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