Issue link: https://read.dmtmag.com/i/379417
www.PowersportsBusiness.com Powersports Business • September 8, 2014 • 43 AFTERMARKET Maxxis, CST, Seizmik bolster policies to benefit dealers, brands BY DAVE McMAHON EDITOR IN CHIEF A pair of key aftermarket companies recently enacted enhanced MAP (Minimum Adver- tised Price) policies that are meant to improve dealer margin and protect brand value. Harry Tripp, Specialty Division manager of Maxxis International – USA, reports that Maxxis has implemented a MAP policy for all of its ATV and motorcycle products. According to the policy, any Maxxis prod- uct must be advertised at a price that meets or exceeds the MAP for that product. The policy, which went into effect Sept. 1, applies to all forms of media advertising, including TV, radio, magazine, catalog, direct mail and online sales. The policy forbids the sale of Maxxis products through online auction sites and third-party listing sites. Violators will be subject to a series of escalating penalties, end- ing in a 12-month suspension of an account for a third offense. "We think that this policy is fair to every- one involved, and will help to protect the value of our products for our customers and the Maxxis brand," said Hulen King, director of Maxxis' Specialty Tire division. Maxxis' sister company CST has also imple- mented a similar MAP policy for all of its motor- cycle, ATV and bicycle products in an effort to maintain and enhance its brand image. According to the policy, any CST product must be advertised at a price that meets or exceeds the MAP for that product. The policy also went into effect Sept. 1. Similarly, Steve Shankin, president and owner of Vialink | Seizmik, recently enacted a MAP policy that is meant to increase dealer margins. "I'm doing this for one very important and selfish reason: TO HELP YOU MAKE MONEY," Shankin writes in a letter to deal- ers. "You see, it's my intent to make sure that Seizmik products are only available through dealers, and if you're not making money selling Seizmik products, then I have a big problem. I don't have (or want) any other way to get Seizmik products in the hands of end users other than dealers, so I'm relying on you for the success of my business. "When our products get into the wrong retailers' hands, and they sell it at a margin that isn't sustainable, that causes problems for you AND me. Let's work together to stop it from happening." Shankin said that every product in the Seizmik assortment has a starting gross mar- gin of 35 percent, with some dealers receiving higher margins based on their program with their preferred distributor. The MAP policy allows discounting of 5 percent. Each adver- tisement of a product identified in the MSRP schedule more than 5 percent below the MSRP will be a violation of the MAP policy. "When you come across anyone offer- ing Seizmik products at a discount greater than 5 percent, please email us the details to MAP@seizmik.com and we'll take appropri- ate action," Shankin writes. "We don't sell consumer or dealer direct, and we've got the full support from our distributors with this policy and its enforcement." Seizmik's MAP policy became effective on July 1 and applies to all distributors and retail- ers, including catalogs and Internet retail- ers (collectively, "Resellers"), who r e s e l l S e i z m i k products to end users. PSB MAP policies enhanced by companies "When our products get into the wrong retailers' hands, and they sell it at a margin that isn't sustainable, that causes problems for you AND me." Steve Shankin, president and owner, Vialink | Seizmik Sister tire companies CST and Maxxis have each released new Minimum Advertised Price policies.