Keystone RV Co.’s Minimum Advertised Price policy (MAP) instituted earlier this year has won both praise and disdain by its dealers.
Either way, a recent lawsuit filed against Keystone by Cooper’s RV Center, Murrysville, Pa., serves to “highlight the conflicting opinions on this subject,” according to the Goshen, Ind.-based builder.
“Over the past three years our Internet advertising policy has evolved as we have considered a wide spectrum of dealer positions,” said Ron Fenech, Keystone president and CEO. “We recognize this is a very sensitive issue to all our dealers. What we have found works best is to ultimately consider the retail customer and what puts them in the best position to have a long-term positive experience with Keystone products, including service after the sale.”
Keystone said its MAP advertising policy allows dealers to sell products “at the price they see fit.” The MAP price reflects a significant discount off list price. The policy is designed to “discourage dealers from advertising any current model year new or used product outside of the dealer’s immediate market area at less than Minimum Advertised Price (MAP).”
Advertising within the dealer’s immediate market area carries no MAP stipulations.
“We have no interest in dictating to our dealers at what prices they can sell Keystone products,” said Fenech. “MAP addresses advertised price outside the dealer’s primary market area, not selling price. Our dealers are free to sell for whatever price they feel best fits their customers’ and business needs.”
Concerning the Cooper’s RV Center lawsuit, Fenech noted: “Following many discussions with this dealership in trying to convince them to comply with our MAP policy, we were forced to give the dealer a termination notice for the brand in violation. Cooper’s is an important dealer to Keystone and we wanted to avoid terminating the brand but, unfortunately, their failure to comply with our repeated requests left us no choice.”