The importance of price control! What is the significance of price control by brands?

Many brands don’t know what price control is. What does price control mean to brands? Today, the editor will lead readers to discover how we do brand price control:

Price control refers to controlling the sales price of products through effective means to regulate the market. It belongs to the field of microeconomics study. In the era of booming e-commerce, online price control by brands has gradually received more attention.

For online e-commerce platforms, such as Taobao, JD.com, Pinduoduo, Tmall, Xianyu, and even some foreign e-commerce platforms such as Amazon and AliExpress, they are all platforms where brands need to protect their rights. Baibo intellectual property rights, etc. To carry out online price control for brands and combat unauthorized online issues. Today I will introduce to you how a professional third-party empty price company handles price control issues:

1. For brands, it is necessary to formulate a reasonable channel profit distribution price list

Regardless of whether the forward addition method or the backward deduction method is adopted, reasonable profit margins must be left for wholesalers and retailers. Different industries and channels have different profit requirements for products. Consumer goods wholesalers and retailers generally require a gross profit margin of about 20%, while clothing wholesalers and retailers require a gross profit of more than 50%.

Whether online or offline, once a channel profit price list that suits the interests of all parties is formulated and released, the channel parties must strictly abide by it and are not allowed to adjust wholesale and retail prices without authorization. In order to avoid unnecessary legal risks, the sales contract signed with the wholesaler/retailer must have price limit clauses, not just internal company documents and regulations.

2. Develop strict channel punishment policies

It is the good wish of enterprises to hope that all parties in the channel will abide by the price management policy for a long time. However, channel operators will intentionally or unintentionally reduce or increase prices without authorization due to issues such as funding, competition, and customers, causing channel price chaos. The enterprise and the channel dealer are different legal entities, and they are not public management institutions. In theory, they have no right to punish the channel dealer. In practice, the enterprise will stipulate relevant punitive measures in the sales contract.

3. Consolidate unauthorized stores

Monitor unauthorized stores through online inspections. For those stores with good sales and friendly attitude, they can recruit distributors and give them benefits. Receiving the name of the company can not only collect more profits for the company, but also reduce unauthorized sales. pirate shop

You can contact Shang Shihua for the above operation methods. For price control companies, these processes have been practiced for a long time. For Shang Shihua, the above processes can not only be operated quickly, but also provide more ways to improve the brand side. Carry out online price monitoring and alarm processing and brand market planning issues. For more details, please contact us to answer more brand rights protection questions for you.