Issue link: https://www.e-digitaleditions.com/i/727467
34 FEDA News & Views other place pricing can be confirmed. When a violation is discovered, enforce- ment must be immediate and consistent. Enforcement must be meaningful. Rebates can be suspended as an effec- tive motivator. Accounts may need to be suspended or even closed. However, if a dealer can correct their mistake by with- drawing or correcting a quote in time to re-establish a level playing field, this should be considered. Communication is key. Lastly, regular discussion between channel partners to discuss what is and is not working is key. These are dynamic policies and they need to be constantly updated and improved upon based on real-world experience. Good partners talk and work together in an effort to improve things for everyone involved. Brutal honesty is the best policy between great partners. Pricing Policy In response to Past President Jim Hanson's May/June Industry Insights Column on the state of MAP & MRP in our industry, we asked HATCO's Mike Whiteley & Former ITW President Tom Szafranski for their take on how to make them work. Mike Whiteley Vice President Sales and Marketing HATCO CORPORATION What are 5 keys to a successful MRP Policy? Mike Whiteley: You must have a product or a brand that is a high-quality product that requires dealer support in the sales process. I always ask people, "Do you compete on product quality or on low price?" If your goal is to be the lowest price in a commodity category, then MRP is not for you. If you sell a high-quality product that is specified and supported with high levels of customer service, than MRP is a great way to make sure your customers get the value and support they need. An effective MRP policy must be consistently applied and consistently enforced. There can be no discrimination. Everyone MUST be held responsible. No one is special. No one is excluded. Enforcement must be a passion and a priority. Dealers do a good job of polic- ing themselves, but manufactures still need to actively and aggressively moni- tor Internet prices, bid prices, and any