Unilateral pricing, where the retailer is to keep a hard line on pricing and not offer any discounts unless pre-approved by the manufacturer, has been used by Bose for years. It now comes to Denon, Marantz, and Boston Acoustics, in a plan announced by the 3 company’s parent firm, D&M Holdings.
In attempt to protect dealers from unauthorized resellers, and ensure a high level of customer service, D&M is launching a new dealer support website and implementing new dealer agreements. The new agreements are designed to help prevent dealers from facing price eroded competition from unauthorized (mostly Internet) dealers.
D&M brass gave the primary reasons for this initiative as a way to help “protect our brand integrity “ and “forge stronger relationships with our dealers “. The initiative affects direct dealers and those authorized to purchase through D&M authorized distributors.