Marketing Issue [RE-wrenches]

Ezra Auerbach, DragonSun Consulting ezra at lasqueti.net
Fri May 16 12:33:35 PDT 2003


Hi all,

A few years ago I had the opportunity to do some serious research on the
matter of advertising products at less than MSRP.  It seems that there
are ways that manufacturers can take reasonable action to protect the
'perceived value' of their trademark(s) through Advertising Polices.
What a manufacturer absolutely can not do is to try to interfere in any
way with the actual selling price.  The distinction between the two
being that one action governs advertising (think of every time you have
seen an ad for something "too low to advertise".  The other action is
commerce, the act of selling goods to another person and it is illegal
for a manufacturer (or distributor) to interfere with commerce.

Some manufacturers in various industries, ours included do publish
Advertising Policies and to one degree or another those companies have
some affect on published low-ball pricing.  To my knowledge no one has
pushed any of these Policies to court-thank goodness.

Cheers,

Ezra

Ezra Auerbach
DragonSun Consulting
Morewater Road
Lasqueti Island, B.C. V0R 2J0
 
ezra at lasqueti.net
250 333 8650 voice
250 333 8670 fax 


-----Original Message-----
From: matthew tritt [mailto:solarone at charter.net] 
Sent: Friday, May 16, 2003 9:16 AM
To: RE-wrenches at topica.com
Subject: Re: Marketing Issue [RE-wrenches]


Smitty,

I actually got pissed-off enough with one of these companies to call to
complain about their pricing. Instead of telling me to f*** off, they
actually tried to get me to buy wholesale from them! Wow!

I was informed that the "way to make solar more affordable was to sell
at lower prices to the public." This same place also installs systems
somewhere down in Southern California, and they seemed to be pretty
regular guys, until the Big Marketing Cheese got on the line to attempt
to sign me up as a dealer. It became very clear that he drinks way too
much coffee and has absolutely no scruples when it comes to competing
with other companies. The attitude was "if you don't like it, too damn
bad!"

I suspect that most of the el-Cheapo Solar companies have similar ways
of thinking and advertising. From what I hear from my overseas friends,
this attitude is basically what America is known for around the world,
even when it comes to foreign policy, not only business. So are we
complaining about individual companies that advertise in HP, or is it
really about a cultural problem that goes far beyond our own industry?

What Joe S. and others have mentioned, is that you can't prevent an
advertiser from advertising if he pays his bills (more cultural
problems!), but why not prevent the offenders from advertising actual
prices in the magazine? Why not allow them to give a web address for
those interested enough to get their bogus pricing on-line? That way a
potential client won't be lost while he or she is still in the shop
simply because they opened up a copy of Home Power which you have
provided!

Matt T
----- Original Message ----- 
From: "Smitty" <smitty at aaasolar.com>
To: <RE-wrenches at topica.com>
Sent: Friday, May 16, 2003 7:28 AM
Subject: Re: Marketing Issue [RE-wrenches]


> Bob, I agree with you, and to add a thought, HP did not create 
> heretodaysolar.com guys. To me they appear to be knee jerk reactions 
> to an energy crisis and y2k. I think if you look back a year or two at

> old HPs,
you
> will find plenty of ads not present today. They are as loyal as a Hong
Kong
> whore and have the longevity of a Mayfly. 5% margins? Sheesh! Never 
> underestimate the power of incompetence. Smitty
>
> "Bob Ellison, Alternative Energy Systems" wrote:
>
> >  "They do promote local dealers in their magazines but are 
> > hypocrites by allowing these ads."
> >
> > I don't think they have a choice in taking the ads from the cheapo 
> > no service dealers. If they have the money and it is not illegal, 
> > they pretty much have to
take
> > the ad as long as the bill is paid.
> > The exception could be if the bill is not getting paid.
> >  Or if a high level of complaints come in on a peticular advertiser.

> > But
it
> > takes money to fight them if they try to force you to take it.
> >
> > Glad it's not my call, hard to win that one.
> >
> > Bob
> >
> > RE. Ellison
> > Supplier of;
> > Alternative Energy Systems & Supplies
> > 34642 Countryman Road
> > Theresa, NY. USA
> >                                13691-2076
> >
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