GRAPH TECH GUITAR LABS MINIMUM ADVERTISED PRICE POLICY

Effective:  March 1, 2015

INTRODUCTION

This Minimum Advertised Price Policy (“Policy”), adopted unilaterally by Graph Tech Guitar Labs (“GRAPH TECH”) in its sole and absolute discretion, replaces and supersedes all prior Minimum Advertised Price policies issued by GRAPH TECH and applies to all GRAPH TECH distributors, wholesalers, retailers, dealers and other resellers located worldwide (collectively, the “Resellers”).

This Policy has been implemented in order for GRAPH TECH to better compete against established brands in the market for premium musical instrument parts and accessories. In particular, GRAPH TECH has determined that adoption of this Policy is a necessary component of its strategy to reduce or minimize distribution channel conflicts and to ensure that its line of products is supported with aggressive marketing, prominent merchandising and product displays, pre-sale and post-sale customer service, education and stocking of sufficient product inventories to adequately service local markets. 

This Policy is subject to change at any time by GRAPH TECH, in its sole and absolute discretion.

POLICY APPLICATION

This Policy applies to all resellers of GRAPH TECH products who buy directly from GRAPH TECH and who now or hereafter directly sell GRAPH TECH products or who resell any GRAPH TECH products to one or more companies that sell, or intend to sell, GRAPH TECH products. GRAPH TECH sells its products to those resellers who respect its policies.

POLICY

This Policy applies to all products regardless of condition, manufactured and distributed under the GRAPH TECH brand names (the “MAP Products”). The Minimum Advertised Price (“MAP”) for the MAP Products shall be posted on GRAPH TECH’s website at the address http://www.graphtech.com/map-policy

All Products must be advertised either as “NEW” or “USED”. “USED” product advertising must include the statement “includes no manufacturer’s warranty”. 

This Policy does not apply to “USED” items sold without manufacturer’s warranty, or to special over-stock promotions as announced by GRAPH TECH. GRAPH TECH may also, from time to time, announce promotional periods during which the Policy will not apply with respect to all or some MAP Products. 

Resellers located in the United States are not allowed to sell outside of the United States, unless otherwise negotiated and agreed upon in writing by GRAPH TECH.

VIOLATIONS

A violation of the Policy occurs when a price for MAP Products is displayed or mentioned in any medium (including but not limited to print, on-line, billboard, television, radio, mobile) that is below the published MAP. This includes using any on-line or internet ads or campaigns with respect to the sale of MAP Products as well as sponsored links and websites operated by, affiliated with, and/or linked to the Reseller.

GRAPH TECH recognizes that violations may be inadvertent violations and will take that into consideration during its investigation of a potential violation. If, after conducting an investigation, GRAPH TECH determines that a Reseller directly or indirectly has engaged in advertising of any MAP Products at a resale price less than the MAP, GRAPH TECH may, in its sole discretion, suspend sales of all MAP Products to the Reseller and revoke all licenses granting Reseller the right to use any GRAPH TECH intellectual property, including but not limited to the GRAPH TECH logo, brand logos, trademark or copyright symbol, any description, image or other material regarding any MAP Products. 

Note: This Policy is not intended to restrict GRAPH TECH’s rights to manage its distribution channels and to make and change its decisions regarding Resellers and others with whom it will do business. GRAPH TECH reserves the right to immediately cease doing business with any Reseller.

ADVERTISED PRICE

All advertising of MAP Products must include a price. Advertising with a price that has been lined through or in a strikethrough typeface, unless accompanied by a clear price at or above MAP which has not been lined through or in a strikethrough typeface, will be considered a Policy violation.

SHOPPING CART

Showing the price on a product information page and a lower price when the product is added to a “shopping cart” page is also considered a Policy violation.

AUCTIONS

Auctions are considered a Policy violation.

AUTOMATED E-MAIL

Automated e-mails in response to Website inquiries are considered advertising for purposes of the Policy. However, direct price negotiations by telephone calls or e-mail exchanges initiated by the customer will not be considered advertising for purposes of the Policy.

APPROVED PRODUCT PHOTOGRAPHS AND DESCRIPTIONS

Advertising of our products in catalogs and websites must include color photographs and clear and complete descriptions meeting GRAPH TECH standards. Please contact your GRAPH TECH representative for access to approved photographs and descriptions.

INSTANT DISCOUNTS

Advertising that includes Instant Discounts, including but not limited to Instant Coupon Codes, Instant Rebates, Instant Gift Cards, specific to or featuring MAP Products are prohibited under the Policy. 

Discounts offered against future purchases are not considered a Policy Violation.

REFERENCE TO POLICY

Any reference to the Policy in advertising MAP Products will be considered a Policy violation.

PERMITTED PACKAGE / BUNDLED ADVERTISING

The advertising of free or discounted products in a package or bundle containing a MAP Product is prohibited under the Policy, except as provided in this paragraph: (Value of each product is defined as the lesser of Manufacturer’s Suggested Retail Price (“MSRP”) or MAP.)

A: GRAPH TECH MAP Product is the featured and highest valued item in the bundle AND the bundle includes GRAPH TECH products only.

1. Should the bundled items be a GRAPH TECH branded non-MAP product valued up to 30% of the GRAPH TECH MAP Product value, then the advertisement must set forth the MAP for the GRAPH TECH MAP Product.

B: GRAPH TECH MAP Product is the featured and highest valued item in the bundle AND the bundle includes Non-GRAPH TECH product or Mixed Branded product.

2. Should the bundled items include Non-GRAPH TECH product valued up to 15% of the GRAPH TECH MAP Product value, then the GRAPH TECH MAP Product must be advertised at the MAP.

3. Should the bundled items include a Non-GRAPH TECH product valued between 15% - 30% of the GRAPH TECH MAP Product, then the GRAPH TECH MAP Product must be advertised at MAP + 10%.

4. At no time should the total value of bundled items exceed 30% of the GRAPH TECH MAP Product value. This is considered a violation of this Policy.

C: GRAPH TECH MAP Product is included in the bundled group and is not the highest valued item in the bundle.


GRAPH TECH MAP POLICY ADMINISTRATOR


No GRAPH TECH employee or sales representative has any authority to modify or alter this Policy or to negotiate this Policy or any agreement with respect to it with any Reseller. This Policy is unilateral, non-negotiable and will not be discussed by GRAPH TECH. Nor will it be altered for any Reseller. Each Reseller is free to independently decide whether or not to follow the Policy. All Resellers of MAP Products remain free to sell the MAP Products (as defined below) at any price they choose in their sole and absolute discretion.

The person authorized to answer questions regarding this policy or to comment on the policy on behalf of GRAPH TECH GUITAR LABS is Eric J. Gillespie (International Marketing Manager).

Please contact him at eric@graphtech.com  or  1-(604)-940-5353 *134

GRAPH TECH MAP PRICING


At all times, you can find an up to date version of our MAP Price List at the url below:

 

http://www.graphtech.com/map-policy