FINALLY Panini drops MAPP...

[Kingbudd]

During two days worth of intensive, impassioned and productive distributor meetings at company headquarters earlier this week, Panini America Vice President of Sales, D.J. Kazmierczak, announced that the company would no longer require hobby shops to adhere to a previously instated minimum advertised pricing policy (MAPP) on its products. The policy change is effective with the February 27 release of 2012 National Treasures Baseball and includes products currently being solicited.

The announcement reinforces a philosophical shift in the company’s sales efforts and is intended to give Panini America’s content-rich products a faster start immediately upon release. Today, Kazmierczak elaborated on the decision.

What were some of the key factors that led to the decision to eliminate the retail MAPP?
“The main factor was velocity of sales. Panini America products have the most autograph and memorabilia cards in the industry and the first 30 days of the sales cycle are critical for many of those cards to make it into collectors’ hands and, subsequently, the secondary market. Another factor is that our superior product content supports a move toward a more free-market approach.

What do you see as the biggest benefits to removing the retail MAPP policy? How will our products benefit and how will dealers benefit?
“The biggest benefit will be market liquidity. That approach will benefit everyone involved because it helps with inventory turns. In addition, this different approach will create more demand for pre-ordering product. That is something that we all prefer.”

What has early feedback been to the retail MAPP elimination?
“Overall, it has been positive. Obviously, there are merits to a retail MAPP policy and those merits were the reason that our company went in that direction a couple of years ago. But this is a very fluid category and the time has come for a fundamental shift in philosophy. The ultimate goal at the end of the day is to provide the marketplace the opportunity to pull a product through in a reasonable amount of time. With our strong stable of brands, we feel that our products will perform strongly in the marketplace based on their own merit.”

[hche]

I don't have a problem with MAAP but the products they made didn't match the MAAP. I think only Prizm basketball is selling higher than the original MAAP?

This is a good thing.

[hermanotarjeta]

In other words, we admit we can't move any product because the srp is too high, so letting the market dictate prices will help move product.

I wonder when they will announce that they have decided to improve their products...

[jprk31]

So would this mean that Panini products would be priced lower when they come out on the first day? They have so much overpriced product (limited, absolute) this nba season it's not even worth buying when the product comes out.

[tennelson55]

Originally Posted by hermanotarjeta

In other words, we admit we can't move any product because the srp is too high, so letting the market dictate prices will help move product.

I wonder when they will announce that they have decided to improve their products...

Exactly my thoughts. Also the sellers may or may not change pricing.

[phil]

put this one in the duh department. almost everyone including me said it would hurt their sales overall when it was implemented.

[crazymj]

Should immediately on timeless treasures boxes.

[yaoming]

YAY!!!!!!

So will preferred be 150. A box and gold standard be 130 a box ?

[Kingbudd]

I don't know about Preferred, it sold well last year and still commands the initial MAPP of $200. During the peak I saw it for $225-250. So I think Preferred will stay around $200. Lowest most likely is $180-190.

[crazymj]

Originally Posted by yaoming

YAY!!!!!!

So will preferred be 150. A box and gold standard be 130 a box ?

Lol, preferred might now be like $250 after the first week of release.

[phil]

Select at less than MAPP will be pretty tempting

[gamboooler]

Free market! U. S. A. U. S. A.

[yaoming]

Would love to see how this will change the current presell prices of upcoming products!

[tristan20]

Most products will be 50% at release lol

[thepinoymamba]

This is great news now it all depends on your own LCS.
I'm sure mine will be one of the best and most competitive prices.
Love it!

[cruiserdaddy7]

I wonder if Upper Deck will drop their 90 day price fix? More interested for Hockey.

[zebrastar]

This is great news for Blowout, since they are the largest seller of product they should be able to operate off the smallest margins...

[go_steelers07]

Originally Posted by cruiserdaddy7

I wonder if Upper Deck will drop their 90 day price fix? More interested for Hockey.

is UD even making any Hockey this year?

[jameshues]

So guys, can someone just plainly answer — this means cheaper Panini products, right?

[jj2]

Originally Posted by jameshues

So guys, can someone just plainly answer — this means cheaper Panini products, right?

It could go either way, really. If a product is popular like Prizm then it means the price can be increased immediately. Otherwise, obviously something like TT or Absolute will likely drop in price a lot quicker.

[crazymj]

Originally Posted by jj2

It could go either way, really. If a product is popular like Prizm then it means the price can be increased immediately. Otherwise, obviously something like TT or Absolute will likely drop in price a lot quicker.

I thought they can always make it higher, just not less. So say National Treasures comes out and its at $1800. Tons of people buy it, i think the websites can increase their price to $2000 immediately. Someone confirm?

[jj2]

Originally Posted by crazymj

I thought they can always make it higher, just not less. So say National Treasures comes out and its at $1800. Tons of people buy it, i think the websites can increase their price to $2000 immediately. Someone confirm?

You might be right, I think.

[jr24ai3]

Even at MAPP pricing, your LCS is not making much on a box. I think MAPP on Contenders is $140/box. It costs your LCS $108/box. That's only a $32 profit on a $140 sale. Take out a couple of bucks for credit card fees and they are close to making $28/box. So its not like the LCS was making a killing with MAPP pricing. MAPP pricing just protected the LCS for 30 days before online sellers could start dumping product and moving on to the next terrible product.

EDIT: Referring to contenders football. Correction for basketball is in a later post.

[jr24ai3]

And MAPP pricing is the minimum price you can advertise a product at. You can always charge more.

[phil]

Originally Posted by jr24ai3

Even at MAPP pricing, your LCS is not making much on a box. I think MAPP on Contenders is $140/box. It costs your LCS $108/box.

i don't know what factory cost was but the local distributor that sells to LCS's here is $92 on contenders.