An authorized reseller program is an agreement between a brand and its resellers that allows the sellers to distribute the provider's products in exchange for certain benefits like exclusive discounts, access to marketing materials and more.
The goal of the program is to increase brand recognition, sales and MAP compliance.
In this blog post, we'll explore the benefits of authorized reseller programs (also known as “authorized dealer programs”), we’ll show you how to get started and we’ll share some advice on how to maintain relationships with your authorized dealers.
How to Set Up an Authorized Reseller Program
Setting up an authorized reseller program can be a complicated task, so it's important to have concrete steps in place if you're considering entering the ecommerce arena.
We’ll outline some basic steps below:
- Establish criteria for who will make the cut as an authorized dealer. This can include factors such as location, customer service history and present/past ability to hit certain sales goals
- Set pricing strategies that reflect the authorized dealer's competitive position in their region. These strategies should also help to maintain a healthy margin and ensure the authorized reseller is adequately compensated for their efforts.
- Include your minimum advertised pricing policy in those pricing policies.
- Decide on distribution options and any incentives or bonuses you wish to offer authorized dealers. This can incentivize your high performing dealers to remain loyal, engaged and MAP compliant.
- Begin accepting applications for your program.
It may seem daunting but done right, these programs can provide worthwhile benefits and solidify your brand's presence in the digital landscape.
Benefits from Authorized Dealer Programs
An authorized reseller or dealer program benefits both brands and buyers alike.
Brands who set up this type of program are able to establish a wide network of vetted, reliable partners that they can entrust with certain brand activities like marketing or merchandising.
On the flip side, consumers also get the assurance that what they're purchasing is authentic.
Being an authorized seller gives you certain retail privileges like:
- License to use brand’s trademarks and copyrighted images
- Customer service from the brand
- Product Warranties
- Product and sales training
- Access to special deals and new product releases
Authorized reseller and dealer programs can be a great way for brands to maintain a level of quality control. Done right, implementing such a program can make sure products meet consumers’ expectations — after all, a brand is usually only as good as its weakest link.
That’s why having top-level dealers is paramount when it comes to keeping customers loyal. To make their program successful, brands should first make sure they have established the right criteria for potential dealers.
How to Maintain Productive Relationships With Your Resellers
A successful program requires consistent two-way communication and active listening between both parties so that any challenges can be identified early on.
In addition to staying in contact — whether that be via phone or email — setting up regular meetings both virtually and in person will help maintain a good relationship as well as further strengthen your bond. Furthermore, offering incentives for high performing resellers will not only cultivate an atmosphere of mutual respect but also show them that you value their business and should encourage their ongoing commitment.
All in all, when it comes to keeping your authorized resellers/dealers happy, regular communication and incentivization go a long way.
Tips on Using Technology to Make your Program More Efficient
Today's brands know that authorized reseller/dealer programs are a must. But having an efficient program is another mission entirely. The good news is, technology can help make the process smoother than ever.
MAPP Trap product monitoring software is the ultimate tool for staying up-to-date with MAP enforcement and making sure that ONLY authorized sellers carry your products. By leveraging MAPP Trap technology, you unlock peace of mind without spending an arm and a leg on resources — making the most of your reseller/dealer program.