Maxxsonics announced a new business and sales strategy to monitor internet pricing and root out unauthorized sales.
The company is using “data-driven” software and new policies to monitor third-party marketplace and other listings to assure resellers are following company pricing policies.
“It’s a price protection program and a brand protection program to make sure our authorized sellers are using best practices and that for unauthorized parties, we are actively engaging with them to correct the problem,” said Rob Anderson.
The program is currently rolling out. It includes all Maxxsonics brands: MB Quart, Hifonics, Crunch and Autotek.
“We’ve heard the concerns from our dealers and partners loud and clear. Unauthorized sellers create confusion, damage pricing integrity, and ultimately hurt the customer experience,” said Eddie Ramirez, Maxxsonics National Sales Manager.
“As our brands continue to grow in visibility and value, it’s critical that we invest in tools and strategies that defend that value across all platforms,” said Sherri Sawyer, Chief Financial Officer at Maxxsonics.
When I joined the consumer electronics business in 1979 the problems were the same BUT the medium was different. Then it was in the back pages of the stereo magazines. Fifteen years or so, later the Internet took the place of the magazines BUT the problems were identical. Unauthorized resellers secured inventory (sometimes without the manufacturer’s knowledge, BUT many times with the manufacturer’s direct knowledge and help) who then sold that inventory to the consumers at steep discounts. This activity interrupts the authorized retailer’s relationship with its consumer, blemishes the manufacturer’s brand image, and creates great frustration for all in the supply chain.
The solution to this problem has ALWAYS been available. Sadly, the solution has seldom been executed, simple as it is, largely because the manufacturer was more interested in the short term sales increase and a lot less concerned for their retail “partners” relationship with the consumer.
The solution is to serial number the product, inside, outside and on the inner pack and the master cartons. Then the manufacturer tracks to whom the serial numbers were sold by packing list and invoice. Then when the manufacturer identifies an unauthorized reseller, the manufacturer buys the product. discovers the serial number implanted in the interior of the product and discontinues sales to the authorized reseller to whom this product was originally sold. Problem solved or at least greatly reduced.
We have all heard the myriad of excuses why this practice in not possible or practical to employ. To which I say, bunk.
Maxxsonics should be applauded and celebrated if they actually execute.