Saturday, August 30, 2014

Leaf Introduces New MAP Policy to Dealers & Distributors

As outlined in an August 29, 2014 email from Brian Gray, CEO of Leaf:

As you are hopefully already aware, Leaf goes to great lengths to not only provide solid value in its products, but provide substantial support for its products in the aftermarket. To that end, Leaf is constantly looking at its distribution model, customer base and production quantities to find the right mix to allow its products the best chance at success in the marketplace.
               Therefore, it is with great excitement that we present Leaf’s “New Distribution Policy” which will go into effect for all products shipped AFTER September 1st, 2014. The details of this program are outlined below:
-        What is the policy??
* All leaf customers (and in addition, any wax reselling customers they supply) must agree to adhere to a minimum advertised pricing policy (MAP)
              o   Print advertising: For a period of 30 days, no Leaf product should be advertised in print in any medium (including emails, dealer websites, dealer marketplaces, etc) for less than published direct account factory cost. While we know this is a bare minimum pricing policy, we are striving to allow the products time to perform without fear of panic/fear mongers/under financed dealers from affecting perceived market value and harming our legitimate valued accounts. While we hope all of our products trade well above cost, we absolutely want accounts to have freedom to sell without setting a MAP that makes selling completely unrealistically.
             o   eBay advertising: For a period of 30 days, no Leaf product should be advertised via “buy it now” or auctions with a reserve on eBay for less than published direct account factory cost + 15%. While we are aware that this margin is not optimal, we are once again setting a floor with hopes of curtailing “dumping” and hopefully changing the ordering habits of accounts for whom this presents a challenge.
             o   eBay “let it rip auctions”: Should a customer choose to run no reserve actions, this is not a violation of the pricing policy. However, any excessive or abusive “dumping” of product will be addressed with the remedies below. LET IT RIP AUCTIONS SHOULD NOT BE THE PRIMARY MEANS OF SELLING PRODUCT, PLEASE ORDER ACCORDINGLY. 
feel may violate this policy.

-        How will these policy violations be enforced and or addressed?
            o   After the first violation of the above policy, Leaf will notify the offending party in writing. At that point, there is no further consequence should the party comply and remedy and ongoing violation.
            o   If the policy is violated a second time, the account will be cancelled if the account is a direct account. Regardless of if the party buys direct from Leaf, after the second offense the account or party will be added to a “DO NOT SELL TO” list which will be distributed to all Leaf accounts and made available via Leaf’s website. ALL Leaf accounts agree by their direct purchase to honor Leaf’s policy that those parties are NOT authorized to buy the product and should NOT by supplied. For clarity, ALL wholesale accounts are approved until such times as they are added to this list for non-compliance.
-        How will Leaf make these policies even more clear?
          o   Every Leaf solicitation will clearly spell out FACTORY COST MAP and eBay 15% over cost MAP PRICING.
          o   Leaf will clearly specify the 30 day period upon release of each product.
-        How will Leaf enforce these policies on dealer websites, dealer networks and eBay?
         -   On dealer websites and wholesale dealer networks, Leaf will constantly review known websites to
search for violations, however we also need your help! If you see a policy violation, notify us immediately! We will act! This system only works if we all work together to do so.

          o   On eBay, Leaf will regularly police the site for violations. Should you see a violation, please notify us immediately to speed up our addressing of the issue. On eBay, Leaf will VERO (Verified Rights Owner Program) and have removed any Leaf item that is being sold by a party who is added to the “Do Not Sell To” list. In addition, parties that do not conform to this policy will have their items removed under VERO.
Now that the details are laid out, I want to make a couple of clarifications
-        LEAF IS NOT TRYING TO ARTIFICIALLY MANIPULATE THE MARKET: On the contrary, we are attempting to allow our customers to operate with confidence knowing that they have 30 days to sell product without fear of nefarious or legitimately weak parties undermining the distribution process. If a product is weak, people will fill the buys. If it is strong, the buys will indicate that as well.
-        LEAF IS NOT PRICE FIXING: You may sell the product at any price you wish! However, advertised pricing and the way Leaf’s accounts represent the company’s products in the market are our focus.
-        LEAF WANTS THE “DO NOT SELL TO” LIST TO BE EMPTY: We genuinely want every dealer in the world to be able to carry our product, if a customer ends up on this list it is solely by his/her actions and not any arbitrary choice of Leaf’s.
-        LEAF IS INSTITUTING THIS TO HELP ITS CUSTOMERS: We all work in a challenging market. At times artificial challenges and exaggerated knee-jerks arise from behavior in the market that is unprofessional/unwise behavior, the result of inadequate financing or maliciousness in some cases. This policy is aimed at restoring order and creating a stable marketplace in the important 30 day period following release. As our customer, you deserve this protection. That is our goal to provide to you though this program!
I hope this policy and the accompanying details are clear, concise and welcome. I am putting this into place out of a genuine care for our dealers and their success.

Wax Czar will continue to carry Leaf products and can be reached at for orders.


Wax Czar's Luxury Box Sports Cards
19737 Ventura Blvd. #202
Woodland Hills, CA 91364
facebook: Luxury Box Sports Cards
ebay: wax.czar
M-F 11 a.m. - 7 p.m.
Saturday 11 a.m. - 4 p.m.
Closed Sunday

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