Anyone know anything about Minimum Advertised Price and have experience buying and selling products as a dealer?

[fuzzybabybunny]

I recently contacted a manufacturer of photography equipment hoping to become a dealer, and talking with their regional spokesperson, I seem to be getting some conflicting information.

I was giving a dealer price sheet and a dealer MAP sheet. If you break the MAP, you get in trouble with the manufacturor and they may drop you. The problem is, every single photography business on Pricegrabber and on eBay are breaking the MAP, some by large chunks. In reality, the MAP is more like the M(aximum) Advertised Price.

What's going on? I can think of two reasons so far:

1. The big boys can afford to break it because they are the bread and butter for the manufacturer.

2. The smaller guys are somehow sourcing their product not from the manufacturer...

 

[SupaDupaCheez]

Originally posted by: fuzzybabybunny
I recently contacted a manufacturer of photography equipment hoping to become a dealer, and talking with their regional spokesperson, I seem to be getting some conflicting information.

I was giving a dealer price sheet and a dealer MAP sheet. If you break the MAP, you get in trouble with the manufacturor and they may drop you. The problem is, every single photography business on Pricegrabber and on eBay are breaking the MAP, some by large chunks. In reality, the MAP is more like the M(aximum) Advertised Price.

What's going on? I can think of two reasons so far:

1. The big boys can afford to break it because they are the bread and butter for the manufacturer.

2. The smaller guys are somehow sourcing their product not from the manufacturer...

I'd probably say #2 (even though I know nothing about it) because if the little guys were breaking the MAP and therefore breaking into the big guys' sales/profits, you can BET the big guys would be complaining and since they ARE the big guys, they hold more persuasive power over the manufacturers to make the little guys stop.

Just my 2 cents

 

[fuzzybabybunny]

Would this mean that the manufacturor is selling their products for cheaper in other countries?

 

[doze]

Either the smaller guys are buying through distributors or purchasing agents, or the manufacturer simply does not care. To many smaller manufacturers a sale is a sale and they will happily screw some of their clients to make more money in the long run. Welcome to the world of sales.

 

[fuzzybabybunny]

This is kinda frustrating because there is practically NO entry for the smaller guys just starting out. Which I guess is understandable.

For example, the rep. gave me a price sheet and a MAP sheet.

MAP for one item was $600. Everyone online sells it for $500-$600. The price to buy the item directly from the manufacturor is $580 for 4+ quantities. Even if I buy 200 of this item it's still going to be $580 a peice. It's unrealistic, even if I sell at the MAP of $600.

Looks like the only way to get a good price is either be one of the big boys, join a buying group for a group buy (which only big boys can seem to join), or be illegitimate and buy from a third party, and of course everywhere's chock full of scammers. This must be the reason the small mom and pop camera stores fail.

 

[Lonyo]

Originally posted by: fuzzybabybunny
This is kinda frustrating because there is practically NO entry for the smaller guys just starting out. Which I guess is understandable.

For example, the rep. gave me a price sheet and a MAP sheet.

MAP for one item was $600. Everyone online sells it for $500-$600. The price to buy the item directly from the manufacturor is $580 for 4+ quantities. Even if I buy 200 of this item it's still going to be $580 a peice. It's unrealistic, even if I sell at the MAP of $600.

Looks like the only way to get a good price is either be one of the big boys, join a buying group for a group buy (which only big boys can seem to join), or be illegitimate and buy from a third party, and of course everywhere's chock full of scammers. This must be the reason the small mom and pop camera stores fail.

Buy online and resell?

 

[desteffy]

wow sounds like this may not be the best business to get in to.

 

[doze]

Originally posted by: fuzzybabybunny
This is kinda frustrating because there is practically NO entry for the smaller guys just starting out. Which I guess is understandable.

For example, the rep. gave me a price sheet and a MAP sheet.

MAP for one item was $600. Everyone online sells it for $500-$600. The price to buy the item directly from the manufacturor is $580 for 4+ quantities. Even if I buy 200 of this item it's still going to be $580 a peice. It's unrealistic, even if I sell at the MAP of $600.

Looks like the only way to get a good price is either be one of the big boys, join a buying group for a group buy (which only big boys can seem to join), or be illegitimate and buy from a third party, and of course everywhere's chock full of scammers. This must be the reason the small mom and pop camera stores fail.

A quantity of 4 items is nothing for any manufacturer, so that is why you are paying near retail price.

 

[fuzzybabybunny]

Originally posted by: doze

Originally posted by: fuzzybabybunny
This is kinda frustrating because there is practically NO entry for the smaller guys just starting out. Which I guess is understandable.

For example, the rep. gave me a price sheet and a MAP sheet.

MAP for one item was $600. Everyone online sells it for $500-$600. The price to buy the item directly from the manufacturor is $580 for 4+ quantities. Even if I buy 200 of this item it's still going to be $580 a peice. It's unrealistic, even if I sell at the MAP of $600.

Looks like the only way to get a good price is either be one of the big boys, join a buying group for a group buy (which only big boys can seem to join), or be illegitimate and buy from a third party, and of course everywhere's chock full of scammers. This must be the reason the small mom and pop camera stores fail.

A quantity of 4 items is nothing for any manufacturer, so that is why you are paying near retail price.

Look at the bold. Basically the price is $580 for 4 to infinity quantities for customers who are not already the top camera stores, purchasing millions of dollars a month. I'd even go so far as to say that the small B&M camera stores even get this price.

 

[doze]

That price is basically for 4 or similar small quantity, and this item was most likely priced that way because most people don't buy very many at once. If you actually plan to buy multiple units then you have to negotiate price.

So what manufacturer are we talking about anyway?

 

[fuzzybabybunny]

Originally posted by: doze
That price is basically for 4 or similar small quantity, and this item was most likely priced that way because most people don't buy very many at once. If you actually plan to buy multiple units then you have to negotiate price.

So what manufacturer are we talking about anyway?

Here's a quote from one of the rep's emails:

As I stated, Tamron is only interested in your business if you'll adhere to MAP pricing which most of their legitimate dealers follow.

As far as pricing for quantity- Tamron wouldn't want to jeapordize existing relationships with large dealers or buying groups by offering similar pricing to someone buying 10-20 or even 50 pcs of a lens. It's a bigger picture of offering more sku's, market stability, long term proven partnerships and so forth.

It's Tamron. And IMO the first sentence is ironic because hardly ANY of their legitimate dealers follow MAP pricing.

 

[doze]

The Tamron office in the USA is likely not even a part of Tamron corporate, just a sales office setup by a friend in the company. Some guys selling for lower are probably importing from China or Hong Kong (Tamron has offices and dealers in both places) and getting a much better price. Look around a bit on the web for contact info for Tamron China or Hong Kong sales offices or do a bit of digging around on sites like these http://sourcing.tdctrade.com/

Lenses are lightweight and small basically all you need to import is a FEDEX/DHL/UPS account and let them handle the customs details for you.

 

[dethman]

Originally posted by: fuzzybabybunny
This is kinda frustrating because there is practically NO entry for the smaller guys just starting out. Which I guess is understandable.

For example, the rep. gave me a price sheet and a MAP sheet.

MAP for one item was $600. Everyone online sells it for $500-$600. The price to buy the item directly from the manufacturor is $580 for 4+ quantities. Even if I buy 200 of this item it's still going to be $580 a peice. It's unrealistic, even if I sell at the MAP of $600.

Looks like the only way to get a good price is either be one of the big boys, join a buying group for a group buy (which only big boys can seem to join), or be illegitimate and buy from a third party, and of course everywhere's chock full of scammers. This must be the reason the small mom and pop camera stores fail.

well then buy it online for $500 and sell it for $600 wherever the heck you are selling. screw the manufacturer.

 

[sao123]

Originally posted by: fuzzybabybunny
I recently contacted a manufacturer of photography equipment hoping to become a dealer, and talking with their regional spokesperson, I seem to be getting some conflicting information.

I was giving a dealer price sheet and a dealer MAP sheet. If you break the MAP, you get in trouble with the manufacturor and they may drop you. The problem is, every single photography business on Pricegrabber and on eBay are breaking the MAP, some by large chunks. In reality, the MAP is more like the M(aximum) Advertised Price.

What's going on? I can think of two reasons so far:

1. The big boys can afford to break it because they are the bread and butter for the manufacturer.

2. The smaller guys are somehow sourcing their product not from the manufacturer...

Most times... in cases where vendors have a MAP, they're terms of sale include definitions of authorized seller. There are retail authorized sellers, and internet authorized sellers, additionally almost always, all authorized sellers are forbidden in selling products in auction style sales.
Most noteably, Products which come from non-authorized sellers, sold on ebay, or sold below MAP have no MFR warranty, and/or are often are couterfeit products made in china.

Take for example this warning from Callaway Golf, about their products.
Consumer Alert: Fake Clubs sold on auction sites
Nine Ways to avoid being fooled by counterfitters.


Most companies with MAP (which is indeed the minimum advertisable price) based prices should also have information similar to this on their website, or sellers manuals.