Pioneer Electronics has issued notices to dealers informing them that the company will start aggressively enforcing its Minimum Advertised Pricing (MAP) policy.
The emailed notices from Pioneer regional managers told distributors and dealers that Pioneer is implementing a new policy, effective March 16. It will purchase product online, including product from Amazon, Walmart,com, eBay, and New Egg, in search of MAP and transshipping violators.
Pioneer warned dealers that they should not transship or they will be held accountable and face penalties.
While Pioneer has maintained a MAP policy in the past, dealers note that its products can often be seen on the Internet at prices lower than MAP. The recent notices indicate that the company intends to step up MAP enforcement.
Dealers we contacted welcomed the policy.
Pioneer did not immediately respond to our request for comment.
There is no doubt that Pioneer single handedly screwed our industry! Every manufacturer follows their full featured units at LOW map, they feel they have no choice and that may be true! That’s the first problem, giving too much for too little, even at map and forcing others to follow! That needs to change, consumers aren’t demanding a lower map price and would happily pay $20.00 or $30.00 more at map for the majority of units in their lineup as well as others. Then to allow it to be sold so far below map and do NOTHING about it for so many years, its surprising that any brick and mortar still carries Pioneer at all! I have begged and pleaded with Pioneer to correct these industry killing issues to no avail. In turn, they went BK and were bought out by a China investor, which killed the Japanese to see that they allowed that to happen. I for one will believe it when I see it for at least a year, then if it is in fact corrected, and maps are raised to where they could and should be; I will be happy to chat with Pioneer again. Until that happens…Excelon will continue to be our top brand…even if it does happen, Excelon will keep its spot as long as they don’t screw the pooch!
I normally don’t weigh in on these things however someone below posed the question “How can you control MAP when you can’t control distribution?” That is an important question and pushed me to go out on a limb and post a response
Controlling distribution is the key.
In the traditional category of 12 volt where almost the only way for a brand to grow is to obtain market share, many brands simply can’t afford to “control their distribution”. In the short term significant hits are taken to take control of a brands distribution and without something to offset those hits some brands aren’t willing to or simply can’t afford to take the hit. If a brand can kudos to them. I’ve been fortunate to land where we can, and we are. Even when you become committed to the endeavor it is a challenge. There will always be work to be done. We will stay the course and work our plan.
Maybe one day all of those who are so frustrated by this will shift their business to the brands who actually do what they say they are going to do. (HINT! HINT!) I can tell you having moved from one side of the business (retail) to the other (vendor), I have been amazed at how much I didn’t know…if I had only known then what I know now!
“It’s unbelievable how much you don’t know about the game you’ve been playing all your life.”
–Mickey Mantle,
American baseball player
Please don’t ridicule me for my opinion as is often done on this platform. I may get my feelings hurt and never post on the platform again. THANK YOU!
Should do an investigation into Visions Electronics in Canada. They consistently sell Pioneer head units below dealer cost and it is advertised on their ads. What’s the point of a small car audio store selling Pioneer products when Visions Electronics sells it below dealer cost.
Warren Essin
It appears to me that Pioneer woke up and decided to rebuild their Kingdom on their original platform.(Being Profitable) When they introduced the Super Tuner series of products in the early 70’s they were the top Kingdom Builder. If you were in Car Audio, you needed their line. There wasn’t an Alpine or Kenwood.
Those Kingdoms came later.
Pioneer was able to ‘successfully’ achieve their ‘goal’ of taking marketshare, at the expense of ‘going out of business.’ Full-stop.
They undertook this plan, with the primary goal of keeping factories operating at higher efficiency, and moving boxes — the rest of the pieces in the ‘food chain’ be dammed.
So any retailer who fails to recognized that their supplier don’t care one bit about them — beyond ‘paying their tab’ — or who thinks their business can’t prosper w/o malevolent brands, is frankly unwilling to shift his business to brands that are more viable. Competing in a world, where you need to make margin, in order to stay in business, yet know full-well you can’t consistently make adequate profit, is beyond foolish. Support brands that offer value AND have a sustainable model, or pay the consequences…
Why on earth should there even be a radio that works for under a hundred dollars? So much technology for so cheap and it doesnt have to be that way..
Our industry has been eating their young for years.
with what product can you control map with??
Would have preferred this action before and I am happy they are starting to move in the right direction. Let’s hope the move far and fast!
How can you control MAP when you can’t control distribution.
My prediction is pioneer will be out of the car audio business within the next two years. They have raced to zero as far as profitability, dealer cost and retail. Who is going to sell a radio where they make $10 profit if they’re lucky. When an install kit cost more than the radio you know there’s a problem.
Roger that
Distribution should be easy for them to patrol at this point, as they scaled back national distribution 2 years ago to only 5 distributors I think. From that point, they can buy online and track serial numbers. I for one, had to sign a Pioneer Dealer agreement through my Distributor 12 years ago, agreeing to Pioneer’s MAP policy and no trans-shipping.
Better start with Sound of Tri-State, they sell at MAP on their own website, but then sell thru an Amazon front store at dealer cost….
Pioneer should just keep inventing new SKUs that won’t be available through distribution, that will surely make us all come back. My number one brand for 15 years straight, de-throned themselves 2 years ago. They straight-up devalued loyal authorized dealers, destroyed long-standing relationships with top legitimate distributors, and showed absolutely no care whatsoever for a brand committed dealer base.
Kenwood loves my increased business now.
It also SOUNDS better also !!
We will not look at Pioneer again due to their complete lack of caring about this issue for many years. Call me in a year and let me know if works, then maybe we talk again…
Not withstanding the contemporary dark humor above… I very recently decided to buy a Pioneer mech-less device. Of course I looked on line to get the unit at cost. It is after all a Pioneer product and everyone knows Pioneer is easily found at cost on the Internet. Much to my very pleasant surprise, it was the same price at nearly every site I visited. BRAVO to Pioneer if they are true to their MAP enforcement claim. Its good for all solid installing brick & mortar specialty retailers. If price is equal you get to sell your brand and the value add that you create for the consumer.
Ray Windsor
You’re just being nice Ray
They should have started 4 years ago.
LOL
It’s too late , we dropped pioneer over a year ago. We used to pay our distributors more than what is selling on Amazon and Walmart. Sony is the best and selling great.
That’s my opinion.
Due to Coronavirus, MAP will be cancelled until further notice.
LOL, Hope you are well.
A little too late for this…….
I feel that they are fully responsible for driving our head unit market profitability to Zero……………..