FEDA News & Views

FEDASepOct2016

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September/October 2016 35 LESS TIME. LESS LABOR. M O R E F L AVO R . Give operators what they need to enter the realm of true artisan tea and coffee beverages—hot or cold—with incredible precision and speed. For iced refreshments, the BKON Craft Brewer's patented RAIN TM process extracts pure and natural flavors from loose-leaf tea or specialty coffee directly over ice. In just 90 seconds, customers can enjoy any loose-leaf tea on the menu with unmatched freshness, sweetness and taste. • J O I N T H E F L AVO R R E VO LU T I O N • B KO N B R E W.CO M • Same question different policy: What are the keys to successfully implementing MAP? Tom Szafranski: To implement a successful Minimum Advertised Price (MAP) policy, my experience is that fi rst and foremost it has to be measurable! The manufacturer must clearly state the parameters of their policy, have a means to monitor for infractions, and have a set procedure as to how to handle said infractions, i.e., a means of notifying the dealer to adjust incorrect pricing (typi- cally after a manufacturer's annual price increase), a stated timeline for the cor- rection to be made, and a consequence for continued violation. The MAP price shown must be consis- tent to the penny. As crazy as it sounds, I literally had to request corrections over 2 or 3-cent infractions, as customers will click on the lowest price when compar- ing!! Once the policy is in place and com- municated to all, it must be applied consistently, enforced with actual pen- alties and followed through across ALL DEALERS, regardless of relationships and/or volume transacted. Dealers will self-police their competitors as well but you must act promptly on infractions as they are visible to all! My legal counsel, at the time, advised that a MAP policy could only apply to Internet sales. Pricing negotiated in the fi eld or at a dealer's place of business was not subject to the policy or associ- ated consequences. Finally, the initial advertised price shown would need to be the actual price in the basket at checkout—no price deductions as the customer clicks the "buy now" button, which would negate the entire process. Tom Szafranski Former ITW President

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