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.
NOTE: UNDER ALL CIRCUMSTANCES
ABOVE, COMBINATION OR PACKAGE DEALS THAT ATTEMPT TO CIRCUMVENT THE MAP
POLICY WILL BE TREATED AS VIOLATIONS. You may always feel free to
contact us prior to making any offers which you
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.
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Wax Czar will continue to carry Leaf products and can be reached at wax.czar@gmail.com for orders.
CLOSED LABOR DAY MONDAY SEPTEMBER 1st THANK YOU!
Wax Czar's Luxury Box Sports Cards
19737 Ventura Blvd. #202
Woodland Hills, CA 91364
818.437.1889
www.waxczar.com
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
