Aeromotive Unilateral Pricing Policy
Over the years, Aeromotive has striven to ensure the success of the three-tier distribution chain.
Recognizing that the company’s success ultimately relies on the success of their 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 announces that the company has implemented a Unilateral Pricing Policy (UPP) that will establish a Minimal Retail Price (MRP) for all Aeromotive products effective August 1, 2017.
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 the 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
All Aeromotive Warehouse Distributors have been asked to review their pricing and ensure that it conforms with the MRP beginning with the August 1 deadline, as the UPP will be strictly enforced.