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SMS Auto Parts Co. - Selling Policy
As an innovative parts manufacturer, SMS Auto Parts, Co. ("SMS") is focused on maintaining reasonable margins for our distribution sales and network. In recognition of the investment in time and resources required for our high-quality customers to provide the level of customer service and product knowledge expected from our customers, SMS is committed to enforcing policies which allow our resellers to maintain reasonable profit margins through the sale of our manufactured products. SMS has an established Minimum Advertised Price (MAP) Policy that an Authorized Reseller must follow for the advertising and marketing of SMS products. Only Authorized Resellers are permitted to sell or distribute SMS parts and are restricted to the policies below.
SMS MAP Policy Guidelines for SMS Products
MAP pricing for all SMS products can be found on your current price list. All advertised prices must be at or above MAP for all SMS products if a MAP price has been established by SMS. Resellers are not required to list prices in advertising. If a price is listed in an advertisement it must be at or above MAP. Other statements such as “call for price” or “call for quote” are acceptable and permitted.
Resellers are also responsible for ensuring their SMS Mount pricing is at or above MAP on internet search engines. Resellers are free to set the actual resale price of any product as long as it is at or above MAP price given the most recent publication of the price list. SMS’s MAP policy for all SMS products apply to advertising placements, including but not limited to: print ads (inserts, magazines, newspapers, catalogs, mail order catalogs, etc.), broadcast (radio and TV), direct mail, faxes, internet placement with third parties (banner ads, broadcast emails, destination pages, third-party sites), internet placements on resellers own website, and any flyers, posters or coupons.
From time to time, SMS may permit resellers to advertise MAP Products at prices lower than the MAP price, such as one-time 'show prices'. In such events, SMS reserves the right to modify or suspend the MAP price with request in writing from reseller and approval in writing from SMS.
SMS’s MAP Policy does allow resellers to omit pricing entirely from advertisements and/or advertisement statements such as “Call for Price” or “Call for Quote.”
Free Offers Associated with SMS Products
Free shipping and/or handling, 0% sales tax, or free financing promotions do not violate the MAP.
Failure to Comply with the MAP Policy
At the sole discretion of SMS, failure to comply with MAP, intentional and/or repeated failure to abide, may result in the immediate loss of Authorized Reseller status and reseller's ability to purchase SMS products both direct as well as through distribution.
SMS will utilize the following steps to resolve MAP violations:
Any and all dealers selling SMS products which have not purchased directly from SMS, and hereby have not agreed to SMS MAP Policy by means of a duly executed Seller Policy Agreement are classified as Unauthorized Resellers.
Distributors of SMS are required to provide a signed MAP agreement from any dealer selling SMS products. Unauthorized dealers should not be sold to or provided a feed from any distributor whatsoever.
Violations from Authorized Resellers will need to be corrected within 24 hours of notification.
First Violation: Authorized Reseller’s account will be put on hold temporarily and a written warning will be provided. MAP violations must be corrected within 24 hours. Upon correction and following 30 days of compliance, violation will then be cleared.
Second Violation: Authorized Reseller’s account will be put on hold for 30 days.
Third Violation: Authorized Reseller’s account will be put on hold for 180 days. After this duration, SMS will review and determine if account is to be reinstated.
Fourth Violation: Should SMS decide to reinstate an Authorized Reseller who has previously demonstrated a third violation, yet violates a fourth time, the account will be deemed an unauthorized account.
***SMS will issue a new price list (see below) upon the first day of each quarter, based on a calendar year. Pricing must be updated immediately upon receipt.***
SMS Minimum Advertised Prices
ExposedRacks.com website shows MAP prices
Use of SMS logos and marketing material
Use of SMS logos and/or marketing materials are limited to Authorized Resellers only with written permission.
Authorized Resellers are permitted to use SMS logos and marketing material with the intent to promote the SMS brand in a positive way and sell SMS parts. The SMS logo, brand, text, part numbers, language, or any other likeliness of SMS may not be used at any time to promote, sell, advertise, or distribute any other brand or manufacturer products. Violation of such policy may result in revocation of Authorized Reseller status.
All use or replication of the SMS brand must be done in accordance with company policy. Use of the SMS brand shall be considered a privilege and may be revoked by SMS at any time, without cause and without notice.