09/11/2003 -- K40 Develops Internet Policy

Discussion in 'Mobile Electronics News' started by The_Ancient, Oct 6, 2003.

  1. The_Ancient

    The_Ancient Full Member

    K40 Electronics Develops Internet Sales Policy

    September 11, 2003 -- Elgin, Ill. - K40 Electronics announced details regarding an Internet sales policy it developed in response to the proliferation of unapproved sales. The policy targeted Websites advertising K40 Electronics products at less than manufacturer's suggested retail price (MSRP) and unauthorized eBay and other auction site listings.
    "We developed the policy to protect our independent 12-volt retailers and installers and level the playing field," said Kevin Fryer, K40's marketing manager. "We are willing to put long term principles above short term profits."

    In April 2003, K40 sent a dealer agreement letter to over 3,000 active retail accounts, which stated that all K40 products advertised on the Internet should be listed at full MSRP. If found in violation of this agreement, the dealer was contacted by a K40 sales manager and asked to remove or update the listing before any current and future orders would be shipped. An overwhelming majority of K40's dealers immediately complied, however several retailers with combined sales in excess of $100,000 were terminated due to their refusal to comply with the policy. Other damaging and non-traditional selling are eBay and similar auction sites. Upon initial investigation, K40 product could be found in up to eight auctions daily. To thwart these unapproved scourges, K40 began monitoring auctions daily and also enlisted the aid of eBay directly. Now the only auctions conducted are those on discontinued or used K40 product