For manufacturers, gone are the days when it was easy to monitor everyone that is selling your products. In the internet age, there are more resellers online today than ever before, and keeping up with them all can be extremely difficult. In this blog post, we will cover the value that reseller monitoring can have for manufacturers.
The internet has broken down many of the barriers in traditional physical retail, and opened up access to online business owners all around the world wishing to sell online. As more and more sellers enter the world of eCommerce, the increased retail competition has vastly improved availability and improved access to many products.
However, this environment has also caused some anxiety for manufacturers, who often feel that they have lost control over their products once they enter the market place. If online retailers start selling your products unauthorized, or drop prices even lower than before - sacrificing margin - to stay competitive, manufacturers may actually be the ones that suffer. To re-gain control and protect their brand, manufacturers can implement an online price monitoring tool to give them a clear view of how their products are actually distributed in the market. Here are some of the advantages of this solution:
- See who is selling
As a manufacturer, you may think you have a good idea of which retailers are selling your product. But the vastness of the internet has shown that there are many retailers out there that you may never have heard of before. With a price monitoring tool, manufacturers can see the whole picture of who is carrying their brand.
- Make sure Minimum Advertised Price (MAP) is respected
All too often, manufacturers name a MAP and then hope for the best, trusting their re-sellers to respect this price. Unfortunately, this isn’t always the case and MAP violations happen. By setting up alerts, manufacturers can be notified as soon as they occur and contact the re-seller right away.
- Keep an eye on price wars
When a price war strikes, manufacturers need to keep control in their hands. If a reseller drops their price below the MAP, other re-sellers may start to complain, or worse - drop their prices as well. Many times, manufacturers don’t have a way to verify who dropped the price first and when. A price monitoring tool provides brands with the ammunition to ensure that price wars can be dealt with in a timely manner or avoided altogether.
- Preserve brand value and perception
Prices too low and unauthorized resellers can cause serious damage by decreasing the perceived value of your brand. By getting the overall picture of your products in the market, you can verify that your brand’s image is in line with your goals and intervene if there are any problems.
- Keep tabs on grey market sellers
Having a big picture view of their products in the market will also allow brands to watch for any shady grey market activity surrounding their products. A common problem in the luxury market, they will get the see if any counterfeit products are offered online, threatening to tarnish the brand’s perceived quality.
- Improve relationships with retailers
By showing that they are strict about MAP policies, manufacturers can strengthen relationships with re-seller networks by promoting an environment of fairness and equality. Showing that you are prepared to act on any violations in order to preserve your brand image, boosts your credibility and increases trust.
Manufacturers, it’s time to re-gain control over how your products are sold in the market. Pricing Assistant’s MSRP Watchdog can help you see exactly who is selling, where and at what price. Interested in analyzing your brand’s market presence? Schedule a free demo today!