Biz folks: Stores selling product under MSRP?

Hempire Building
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So, not sure if this is the right category for this but I have a question for you biz folks out there among us.

I have one of my regular stores that carry’s my whole product line that is insistent on undercutting ALL of my prices. For instance an item that’s MSRP is $250 they will sell for $220 online and in their store, while on my site and in other stores it stays at $250. I think this is majorly my fault for giving them a good deal on their orders, but my reasoning is if they are a regular customer they get a good deal, and my margins are still fine so I can sleep at night.

What would be a solution to fix this? I’m sure part of it is I only have my line in a few dozen stores selling my stuff right now so I am fixated on the few that are set on being shady, so my solution is to just get more accounts and forget about this one. But what can I do to prevent future stores from doing the same thing?
Is this normal? Am I over reacting?

Any input would be greatly appreciated as always

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MAP pricing sucks, but that’s what a lot of folks do to protect their brand.

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Possible to move your B2B incentives to an annual rebate/invoice credit?

If you’re offering a quality craft product white-labeling might not be a comfortable option.

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Wait till they run out of inventory. The lesson will be a penalty for not following your MSRP if they want repeat business. Their price just went up.

Now if they have their own store credit, discount offers, etc but still display the $250 MSRP. Then I’d leave it be.

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That’s a good way to look at it.

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You can undercut yourselves. Not me.

They should retain your Value and explain their discounts better without advertising the final price as the actual price.

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It’s called a contract. Make them sign one that says they can’t undercut you.

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Also another thing to consider one of them just placed an order I’ll be dropping off on Friday that will pay the rent on my new facility for the next three months, so I am considering waiting until after this order to make the changes.

Really hurts the brand though having stuff out there for 10-20% under MSRP

One of them is sneaky about it too and has a subscribe and save option on their site where people are subbed to my products each month and it saves them X%

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Here’s an example. Xtractor Depot now has Lab Society products at their locations.

Xtractor Depot has Xtractor Points. Lab Society doesn’t have Xtractor Points.

I would expect XD to maintain MSRP but be able to discount their bottom line themselves via means of discounts purchases over x amount. Etc.

Just go in soft and ask if they can do something marketing wise to retain your MSRP

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You should set MAP pricing and send a letter to the stores explaining why your setting MAP and that violators will be terminated from selling said product/s if they do not follow MAP pricing. Now MAP cannot stop them from offering the customer a discount at the register because MAP only covers advertised pricing which includes product price tags and or signage. Some places even get around MAP internet sales by making you place the item in your cart to see pricing. Best Buy does this.

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:rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl:

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@shattertramp Honestly its a tough call especially considering they are comparing prices to yours. The whole thing is the cbd market is so saturated that we all know if you cut them off they will get their product from someone else . Maybe start offering a price match on similar products so that way you get the best of both worlds without having to cut them off . This way even if a unrelated company has products for cheaper you may get some extra business all while making cbd more affordable for the consumer because the products get sold for cheaper wholesale any ways

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It’s a balancing act I’m not sure I’m fully equipped to handle. My sales rep for my pet line has been killing it I think I really need one for everything else now. Doing my best not to lose it on these retail store owners.

I’m used to having the luxury of picking and choosing my customers and not having to be the “Johnny on the spot” customer is always right type. Trade offs of going legit I guess.

I’m offering one of the stores a new CBN product that i have that is 6x the milligrams and 12x the concentration of the other one he has from another brand on the shelf for the same price, but he won’t buy it because it’s in a small bottle and customers can’t wrap their head around purchasing a 15ml bottle apparently. Meanwhile I sold hundreds by hand when I was behind the counter

Extremely frustrating from a formulation and R&D perspective to have stores always asking if I can water stuff down and make it different, they might as well be asking to have it in flinstone vitamin form. And on top of that the undercutting. Ah the joys of running a business.

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I like the idea of waiting until they have to order again I’ll probably go that route. Have been giving too many huge hookups to folks who end up complaining anyways. Also will be spending a week or two reaching out to new stores. Constant balancing act

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When I see things cheaper through another business channel than from the producer, i always assume it’s mostly so the distro has to deal with the always right customer, and they get bulk deals for human to human interface, which can go both ways…

Id just get it worded all cozy for future contracts.

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