Aiming to keep its products from being marketed at too low a price, Anderson Floors said it has instituted a new advertising policy for its family of brands. Under the terms of the policy, which covers advertising in media including television, radio, print and the Web, retailers must meet a minimum advertised price to participate. The change is designed to protect the company's "luxury brand position and support retailers that invest in our products by allowing a profit to be earned," according to the company.
“Anderson is excited by the positive feedback we have received from retailers and distributors regarding the new policy,” said John Patterson, Anderson's vp sales. “I have been amazed at the response from our customers. Our new policy allows each retailer the opportunity to earn a fair profit without dealing with predatory pricing and ‘bait and switch’ tactics during the shopping process.”
According to Anderson distributor Bob Eady, vp of T and L Distributing in Houston, the policy will help address the concerns that many Internet retailers are selling Anderson's high-end products as a loss leader. “Our sales staff and management team has been dealing with advertised prices, particularly on the Internet, that make no sense and can’t even cover a retailer’s minimum operating cost," Eady said. "The new policy will allow our retailers and sale team to focus their energy on proactive sales initiatives verses addressing reactive calls dealing with low advertised prices which are outside our control.”
Don Herndon of Melbourne, Fla.-based Classic Wood Flooring echoed his sentiments. "Recently the Anderson brands have gained so much popularity the brand was frequently used by some Internet retailers as a pricing leader with no intention of ever selling it. The new policy allows Classic to continue to sell the best the wood floor industry has to offer providing our customers with a superior product and Classic earns an acceptable margin."
Jeff Sills, Anderson's COO, said the company is addressing the issue of the new policy swiftly. “Currently, we are receiving several inquires per week from the industry regarding companies violating the policy," he said. “Each company is individually contacted by our distributor and in some cases an Anderson associate to inform the Advertisers of the policy guidelines. We will impose the full restriction outlined in the policy to any advertiser not in compliance with the program."
A copy of the policy can be obtained for any Anderson distributor or by contacting Anderson Floors directly. Visit www.andersonfloors.com for more information.
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