Directed Updates Dealer Agreements

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Directed renegotiates dealer contracts

Directed is updating its agreements with more than 2,500 dealers to adapt to new challenges from the Internet, including unauthorized sales on Amazon and eBay.

In the past, Directed upheld a Minimum Advertised Pricing (MAP) policy that included remote start/security hardware plus labor.  But since labor rates vary around the country, the new agreement includes a Unilateral Pricing Policy for hardware only.

Stipulations for the new contract also include guidelines on presenting the Directed brands online, said Directed CEO Bob Struble.

The last Directed contract update was about 5 years ago.  During that time, more unauthorized sales have cropped up regularly on Amazon and eBay, he said.

“I am usually out in the field once a month in a market or two doing dealer visits and asking for feedback. It’s probably the single most common piece of feedback I get, to protect the channel and make sure unauthorized sales stop occurring,” said Struble.

The new agreement will allow Directed to more quickly stop unauthorized sellers, he said.

The contracts will continue to require that authorized dealers must offer professional installation.

The contracts are being negotiated presently and are expected to be finalized by the end of the month.

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