In December the company had launched an authorized reseller policy and has seen more than a 30% decrease in resellers from outside the RV industry. This has resulted in an increase in real world product pricing on the internet and in dealer’s ability to increase their margins.
Its new dealer and distributor programs should help Ultra-Fab’s retail pricing come more in line with its margin expectations for resellers.
“Ultra-Fab is known for having quality products (not cheap knockoffs) with unique features & benefits not available from other manufacturers and for having the best warranties in the industry,” said Raymond Padgett, vice-president of sales and marketing for Ultra-Fab. “Because of that, we want to make sure our resellers enjoy the full benefits of selling these types of items. Our resellers should make more selling our products.
“We have contracted with an outside company to monitor and help us enforce these policies, so we believe we will have excellent visibility on violators. We will of course rely on our distributor partners to a huge degree to enforce our “do not sell” list as we isolate the violators. Although it will not happen all at once, we know we will see a decrease in unfair pricing due to this policy.”