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LAAP & MAP Pricing, a helping or hindering to the brick and mortar retailer?

Posted by Don Parish on October 16, 2010 at 9:57am in Pool Retail Topics

Zodiac Pool Care just released their 2011 LAAP policy.  This got me to thinking about how the LAAP and MAP programs designed by manufacturers to help protect the industry from internet retailers is a double edged sword.  Though (legitimate) e-commerce sites adhere to these policies, the policies themselves prevent brick and mortar retailers from making a decent profit off of these items.

 

I would like to hear everyone elses thoughts.  Do you think that LAAP and MAP pricing is helping or hindering brick and mortar retailers, and why?

 

 

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Tags: e-commerce, internet, laap, map, pricing, retail, sales

Replies

  • Scott Heusser November 10, 2010 at 9:43am
    My brother works in the communications industry and he was telling me about one manufacturer's approach to this situation. First of all we are talking about $50k piece of electronic equipment (router, switch or some other doohickie) and regardless of who sells it they have to be certified by the manufacturer to work on the unit. Despite convention, this manufacturer gives a greater price break to the authorized dealers that sell LESS. This keeps the market competitive by the various companies making money on their skills rather than on a piece of equipment. This helps the manufacturer ensure that the companies sell the appropriate product and install it in a sound manner. Just a thought.
  • Don Parish November 3, 2010 at 1:34pm
    Absolutely, a license a certificate, a trophy... something that identifies us as professionals and not fly by night one polers, or nameless faceless ecommerce people who don't care what ultimately happens to the industry.
  • Scott Heusser November 2, 2010 at 7:40am
    Like a LICENSE?

    Don Parish said:
    The bigger problem is that distribution will sell to any Tom, Dick, or Harry that comes in with a business license, and let them sell on the internet. Most manufacturers wont sell directly to you unless your a LARGE corporation. There needs to be a standard in our industry that identifies you as a pool professional and that standard needs to be recognized by distribution.
  • Don Parish November 1, 2010 at 8:46am
    The bigger problem is that distribution will sell to any Tom, Dick, or Harry that comes in with a business license, and let them sell on the internet. Most manufacturers wont sell directly to you unless your a LARGE corporation. There needs to be a standard in our industry that identifies you as a pool professional and that standard needs to be recognized by distribution.
  • Scott Heusser October 26, 2010 at 8:09am
    My opinion to combat the internet dealer is that the manufacturer's offer the standard warrant yon products purchased froman AUTHORIZED dealer. All other purchases are a 30 day warranty. If the consumer is so motivated to save a couple of bucks they can deal with the repair/warranty should the issue arise.
  • Don Parish October 22, 2010 at 11:37am
    I just received notice from Zodiac that LAAP does not apply to Canada! So if your an online retailer in Canada selling to US residence you can sell for what you want? How does that help retailers compete. Every person selling their product should have to abide by the same rules.

    Thoughts?
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