When you receive unexpected sales from dealers that aren’t on your authorized seller list, it can seem like you’ve gotten lucky. Certainly, the first bump in revenue is a welcome windfall, but it’s after that, when you factor this additional cash flow into your forecasts for the future, that the risks begin to grow. The moment you begin to rely on unpredictable revenue from unauthorized sellers, you increase your chances of inaccuracies for two main reasons:
If you’ve got a strong minimum advertised price policy in place, you’ve taken the first step in protecting your brand online. You might think you’ve taken the appropriate action and things seem to be running smoothly. But by waiting for your retailers to report MAP violations to you, or by simply checking major sites like Amazon a few times a week, you’re actually missing a lot of the bigger picture.
Unknown sellers of your products – these anonymous dealers can sometimes add a pleasant surprise to your actual sales numbers. As long as you’ve still got all of your authorized sellers too, what’s not to love about more companies selling your products?
If your business is meeting its revenue goals, you might not think that having price differences across various channels is a cause for concern. After all, you’re making a profit and things are going well. But it’s never good to get complacent, and inconsistent prices can actually pose a threat to your brand, with trusted retailers dropping selling your product, and your bottom line.