How do I protect RRP when wholesaling my brand?

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UKTrader124

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May 21, 2019
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I have recently started a branded product which has been selling well online. I now want to approach retailers in the UK to sell wholesale to them to stock my product but as there is no MAP (Minimum Advertised Price) in the UK I wondered if there's any other way I can stop retailers driving down my recommended retail price and the overall value of my product?
 

Mr D

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Feb 12, 2017
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Just stop supplying any business that devalues the brand too much.

However you cannot force a business to use a particular price. As you say, we don't use MAP here. With good reason.
 
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Mr D

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that reads like the retailer can then set whatever prices they like?

Pretty much, yes.
Good for the consumer. Good for competition. Bad for people colluding to keep prices artificially high.
 
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Mr D

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and tbh, if you've made a decent bit of profit on the wholesale price charged then it softens the lack of control on the retail end price

If wholesale price is high enough then only an idiot or someone desperate for sales will set too low a retail price.
 
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JamieM

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Mar 22, 2006
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I have recently started a branded product which has been selling well online. I now want to approach retailers in the UK to sell wholesale to them to stock my product but as there is no MAP (Minimum Advertised Price) in the UK I wondered if there's any other way I can stop retailers driving down my recommended retail price and the overall value of my product?

You can’t stop it but you can be selective of who you supply to which can help. Usually it’s quite easy to spot an aggressive discounter. You could also consider not supplying any online only or eBay/Amazon sellers.

Try to ensure you don’t have retailers too close to one another as well.
 
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Mr D

Free Member
Feb 12, 2017
28,614
3,551
Stirling
You can’t stop it but you can be selective of who you supply to which can help. Usually it’s quite easy to spot an aggressive discounter. You could also consider not supplying any online only or eBay/Amazon sellers.

Try to ensure you don’t have retailers too close to one another as well.

Takes effort to make sure areas are covered.
There is a growing trend over the past decade or so to avoid selling to online only retailers. Cutting off nose to spite face perhaps, competitors appear to applaud it.
 
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David Haughton

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Aug 19, 2017
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You could refuse to supply image rights, some of the suppliers we use have used this to some effect to prevent their products being sold online. Other suppliers have told us the product isnt allowed online full stop. Others reduce margins to make it less appealing to sell online. Therell always be one who wants to undercut everyone else.
 
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