D&M Reveals Reseller Authorization Plan

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Mahway, N.J. - D&M Holdings has launched a reseller authorization online portal which, in part, prohibits third-party sales and transhipping, as well as acknowledging a new unilateral advertised pricing policy for its brands.

D&M, which markets the Denon Electronics, Marantz America and Boston Acoustics, said multi-tiered channel management plans comes after a year of preparation, the company said.

Key to the plan is a new reseller authorization online portal that provides all Denon, Marantz and Boston Acoustics resellers, as well as professional integrators, "with an opportunity to partner more closely with all three brands to help maintain sustainable profit margins and grow their businesses," D&M said.

The portal is available for all dealers who purchase directly from the three brands, as well as those who purchase through third party distributors and provides the companies with visibility to everyone representing their brands in the marketplace.

The new web portal requires all dealers and distributors of Denon, Marantz and Boston Acoustics products to register and agree to specific guidelines, including the prohibition on third-party sales and transhipping, as well as acknowledging a new unilateral advertised pricing policy for these brands.

In addition, it clearly outlines the prohibition of internet sales unless authorized to do so through a much more rigorous screening process, D&M said.

The web portal is the cornerstone of a multi-tiered strategy to effectively manage channel sales for all three brands, increase transparency, and partner more closely with all authorized resellers. As part of the ongoing effort to ensure that end users purchase only from authorized resellers capable of communicating the Denon, Marantz and Boston Acoustics technology, innovation, performance and brand benefit messages, all current resellers and all future prospects are required to visit the web portal and electronically sign revised reseller agreements.

D&M also reported that almost 99 percent of its resellers have signed their revised and fully confidential agreements via the online portal and aknowledged the new unilateral advertised pricing policy. Those who have not completed the process are unable to place orders or represent the brands until they do so and are approved, the company said.

In a prepared statement D&M Holdings' North American president Bob Weissburg said the authorization program "will allow us to be more strategic and focused in all channels, guard and protect our brand integrity, forge stronger relationships with our dealers, and also proactively monitor and take swift action to halt practices such as illegal transhipping and misuse of our intellectual property."

He added, "We take our brand and market position very seriously, and this channel management initiative is an important step forward in helping us protect and reward our valued and indispensible authorized reseller network for all three D&M brands."

Phil Cohn, senior VP of sales for D&M Holdings North America, said in a statement, "We recognize that for our authorized resellers and integrators to invest in "telling our story" they must be able to expect a certain level of profit from our brands.  With this initiative, they will have yet another important tool to help grow their businesses."

The announcement comes on the eve of a press event for the Denon and Boston Acoustics brands to outline their 2011/12 lines.


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