Over the years, Aeromotive says it has strived to ensure the success of the three-tier distribution chain. Recognizing that the company’s success ultimately relies on the success of its resellers, Aeromotive has ascribed to the belief that it is critical to work together to strengthen the positions of both in the performance aftermarket.
To retain Aeromotive’s brand value and to preserve a healthy distribution channel, Aeromotive has announced that the company has implemented an unilateral pricing policy (UPP) that will establish a minimal retail price (MRP) for all Aeromotive products. It went into effect on Aug. 1.
This new pricing policy is designed to curb price slashing among Aeromotive retailers and eliminate unlawful counterfeit product sales. Likewise, it will allow all Aeromotive resellers to become more profitable in this highly competitive business environment. In order to remain in good standing with Aeromotive, from the date of implementation of the UPP, Aeromotive resellers will not be allowed to advertise or sell Aeromotive products below the company’s MRP.
Aeromotive will be utilizing the services of a brand protection agency (BPA) to administer and enforce the new UPP. BPA will utilize proprietary software to search websites for violations, send notifications of violations and track the number of violations.
Violations or refusal to participate in the Aeromotive UPP could result in the loss of, and is not limited to:
- Annual advertising cooperative funds
- Privilege to use Aeromotive intellectual properties
- Privilege of being listed on Aeromotive’s dealer locator
- Ability to purchase Aeromotive products