It’s only natural that you’d want to preserve and grow your brand image. With the help of a minimum advertising price policy, you can keep rogue elements from ruining your hard work and effort. It takes a considerable amount of effort, time, and resources to build a brand image and earn customer trust. Creating a positive image among your consumers makes your products and services popular, which is crucial in driving sales. Unfortunately, such success also attracts the attention of the wrong crowd.
In the absence of minimum advertised pricing policy, you will have a lot of rogue resellers carrying your product lines. Unlike authorized resellers, the latter are looking to make a quick buck at the expense of your brand. This will mark down product prices in an effort to sell more items.
Protect your client base
The secret to business success lies in the ability to recruit new customers to your brand while retaining the existing ones. Studies show that keeping an existing customer is five times cheaper than recruiting new ones to your brand. Therefore, you will have better results in growing your business if you can get a large portion of people buying your products to keep coming back for more.
Building high levels of trust in your customer base takes time, and you need to provide them with great products and excellent services continually. Only then can you grow a broad base of return customers who will always pick your products from a crowded shelf.
Rogue resellers can ruin this trust by flooding the market with your products at marked down prices. Your customers are likely to feel exploited and cheated if they pay a full price for a product only to find it selling at half the price elsewhere. You’ll have them decamping in droves to the cheaper outlets, hurting your sales in the process.
Identify your shortcomings
If your products are suddenly available on the market at extremely low prices, it might point to a problem with your distribution systems. It could mean that you have a leak in your distribution system. Some of your employees might be pinching your product and supplying them at below-market prices.
Tracking prices can alert you to such development to let you take quick corrective measures before the situation gets out of hand. It also gives you a chance to purge your ranks of errant employees hell-bent on ruining your company. Timely action is crucial to preserving the integrity of your company’s reputation and retain your customer base.
Clean up your distribution system
Given the intricacies of building a successful brand, you want to have as much control over your distribution as possible. Rogue sellers make it difficult to do this, and this could pose a significant problem. By offering products at lower prices, they deny your legit sellers a chance to make a sale.
It is only natural for shoppers to chase after bargain prices, which means that they will start buying from rogue sellers. This might cause the sales through official outlets to slow down, leaving them with lots of obsolete inventory. The resultant losses will make many resellers reluctant to stock your products.
A large client base is crucial to the success of your business and brand. Retaining a large portion of your customers is a sure way to grow your client base and gain an edge on the market. Subscribing to a MAP policy makes it easy for your business to achieve this goal.