Epsilon brands including Soundstream, Power Acoustik and Precision Power are converting to a Minimum Advertised Pricing (MAP) policy effective October 2.
As part of the program, Epsilon terminated dozens of distributors and it will sign new agreements with a select 10 -12 distributors in the coming weeks. The new distributors will operate in defined territories with MAP agreements attached, it said.
Additionally, Epsilon manufacturer reps will now handle the company’s motorcycle and Bassani motorcycle exhaust products exclusively, said VP Sales Epsilon Group Ronnie Brashear. All other audio products will be sold through the new select distributors, he said.
Epsilon to date has operated without a MAP policy. Brashear admitted the products were overdistributed and said the company is taking aggressive steps to ensure its products are now profitable to its retailers.
“As a company, we helped facilitate this over 30 years. We did not do a good job of monitoring our brands. Regarding this drastic move: it was either this or exit the car audio business,” Brashear said. “We chose to save the car audio side of the business because that’s where our roots are. We started in car audio. Over the next few months we will be picking out strategic partners to help us in this new endeavor.”
New distributors will be announced in the coming coming months, he said.
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