Q&A: Panini America Executive Addresses Elimination of Retail MAPP Pricing Policy

[blowoutcards]

Q&A: Panini America Executive Addresses Elimination of Retail MAPP Pricing Policy

Jan 26th 2013, 00:01

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.”

Q&A: Panini America Executive Addresses Elimination of Retail MAPP Pricing Policy The Official Panini America Blog

[dreamweaver1984]

pretty disappointing, considering it all but destroys card shops, heck they put that in place to help us out, and it did, now they are taking it away.. Thanks Panini.

[oldgoldy97]

Good move. How many people were waiting until the MAPP was over before buying Panini that they knew was over priced from the start. I've already seen places dropping pre-sale prices.

LCSs? Sorry, adapt or disappear.

[cking]

Originally Posted by blowoutcards

Q&A: Panini America Executive Addresses Elimination of Retail MAPP Pricing Policy

Jan 26th 2013, 00:01

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.”

Q&A: Panini America Executive Addresses Elimination of Retail MAPP Pricing Policy The Official Panini America Blog

Seems like they think very highly of themselves. Apparently the actual definition of meir and Paninis definition of merit are two entirely diffrent things. Keep up the good work Panini. After all, screwing your customers over always makes for a great business model.

[natbornkiller]

[dreamweaver1984]

If panini drops their wholesale prices that would be one thing, but right now from what iv seen they are raising it, what is the point of stocking something that you cannot sell for more than 5$ over what you paid.

[kyle1707]

Company has problems....

90% of there products drop 20-40% after release..

baseball is brutal...

They lucked out with FB RC class...

last years basketball was the worst year in history of basketball cards

dominion was good... but there hockey looks so awful compared to dying ud...

[Bob Loblaw]

Originally Posted by dreamweaver1984

pretty disappointing, considering it all but destroys card shops, heck they put that in place to help us out, and it did, now they are taking it away.. Thanks Panini.

Free market.

[Estephano]

Just so I understand that too... does that mean that in the past Panini America told shops/dealers that they e.g. have to sell a pack for $5.99 and may not sell it for less and now every shop and dealer can charge whatever he wants to from 0.99 to whatever? If that's the case then that's a pretty disappointing move IMO because smaller shops will die out as they can't give such a huge discount a large retailer can give. Over here packs are always the same price for this reason.

[dreamweaver1984]

the margins were slim as it was, i dont know of any hobby shops that were complaining that they couldnt sell it for LESS.. i mean we dont want to sell at a loss ever.

I think its good for those who want to move a bunch of overstock, but you would need to be a super high volume dealer to be in that position anyway.

I think that Customers believe the markups to be greater than they are. some shops do mark up things more than others, I try to be the lowest in lexington ky, but i rarely ever sell anything at a loss, granted i only stock what i know i can sell and then restock as i sell more..

[HBMC]

Originally Posted by dreamweaver1984

the margins were slim as it was, i dont know of any hobby shops that were complaining that they couldnt sell it for LESS.. i mean we dont want to sell at a loss ever.

I think its good for those who want to move a bunch of overstock, but you would need to be a super high volume dealer to be in that position anyway.

I think that Customers believe the markups to be greater than they are. some shops do mark up things more than others, I try to be the lowest in lexington ky, but i rarely ever sell anything at a loss, granted i only stock what i know i can sell and then restock as i sell more..

I hear ya man, my LCS owner and I have plenty of discussions about the actual costs of purchasing product from card companies, he's told me what direct cost is to him (I really don't care, I'll pay MSRP for Hobby Direct cases) and he makes way more on cards that walk into his store than the boxes of new product. MAPP directly forced people to pay MSRP and not cut the knees out from under card stores, now people want something for nothing online and still bitch.

I think a lot of people would be shocked at how little card store owners make on boxes, it's a shame so many card stores of the past rip people the hell off by charging way to much on a per-pack basis. (Of course I only buy unopened boxes so that isn't an issue for me).