To help end “unfair price disparities” between pet and pond retailers and Internet discounters, Rolf C. Hagen (USA) Corp. (Mansfield, Mass.) in September announced a new Minimum Advertised Price policy that forbids retailers to advertise the company’s  pet and pond products at prices lower than those published on its M.A.P. list.

Introduced shortly after the HagenDirect program, which allows pet retailers to buy direct, the new M.A.P. policy is another step in the company’s effort to enhance the competitive position of its retail partners.

 “The lack of pricing integrity in the pet and pond products industries is unfair and unhealthy,” said Trevor Hagen, chief operating officer and general manager of the company. “The retailers that invest the time and money in training a staff that can actually educate consumers about pet or pond care are too often left in a position where it’s difficult for them to compete with discounters that have no commitment to service. This is counterproductive because, in the final analysis, without this level of service we’re left with unhappy consumers and a shrinking industry.”

Retailers who advertise prices below M.A.P. standards will receive a written notice requesting immediate cessation of the practice. After a second violation, the company reserves the right to stop selling its products to these retailers. The new policy applies to prices posted on the Internet and in catalogs, as well as in TV, radio and print media advertisements.

 “Our goal is to bring a level of rationality to price advertising,” Hagen said. “We want to close the large gap that exists between the prices advertised on the Internet and those advertised in stores, at least as far as Hagen products are concerned. This is not only essential to our retail partners, but also to maintain the kind of person-to-person service that is so critical to the future growth of any specialty retail channel.”

Furthermore, due to a recent ruling by the U.S. Supreme Court that allows suppliers to set minimum prices for unadvertised goods, Hagen will likely expand its minimum pricing policy to include unadvertised products, as well.
Hagen said he hopes that other industry suppliers join him in implementing more rational pricing policies.

The company is implementing the policy in phases through the end of 2007 to account for current mail-order and Internet catalog expiration dates, Hagen said. The company has established minimum advertised price points for every product in its aquatic, bird, cat, dog, reptile small-animal and pond lines. [November 2007 PET AGE]