Jimmyjane targets discounting retailers with new Minimum Advertised Price policy
Posted: February 19, 2018
Jimmyjane has announced the introduction of a Minimum Advertised Price (MAP) policy to discourage discounting of its products – and retailers who do not abide by its terms could be refused access to stock.
The company said in a statement: “Jimmyjane is proud of our continued leadership in producing high quality products. As Jimmyjane continues to set the standard in its industry, it is increasingly important that our resellers provide personal service and support, including a knowledgeable sales staff, that our products deserve and our customers expect. Jimmyjane understands that it can be costly for resellers to provide these services. To assure its resellers’ service and support efforts, Jimmyjane wishes to establish policies that allow resellers to earn the profits necessary to fund those activities, which often require an investment in employee training, product displays, product demos, customer support, and other services.”
The statement continued: “Jimmyjane has determined that reseller advertising and sales practices that promote Jimmyjane products primarily on the basis of price could be detrimental to resellers’ service and support efforts and Jimmyjane’s competitive position. Such activities are likely to harm Jimmyjane’s top-quality brand, reputation and competitiveness, and allow some resellers to take advantage of the service and support efforts of others, thereby discouraging such efforts on behalf of Jimmyjane products. To encourage our resellers to invest the time and effort necessary to promote Jimmyjane products to the best of their abilities and to maintain the competitiveness and superior consumer perception of the Jimmyjane brand, Jimmyjane is pleased to announce the following Minimum Advertised Price policy: beginning immediately, Jimmyjane, in its unilateral discretion, will not do business with any reseller, as to the products covered by this if that reseller intentionally advertises any product below its suggested minimum advertised price.”
The statement concluded that the company is confident that this new policy will strengthen its competitiveness and benefit all of its resellers. The full statement, and details of the prices, can be found here.