TUFFLOK actively supports the advertising and promotion of its products by its North American and International distributors through materials provided by TUFFLOK at no cost. TUFFLOK has built a strong reputation and following among the contractors who use our products. To preserve its reputation for providing customers with high-value products and robust after-sales support and to further enhance the TUFFLOK image and its competitiveness in the marketplace, TUFFLOK is unilaterally instituting a policy of minimum advertised price standards for TUFFLOK products. Thus, effective January 1, 2023, TUFFLOK will unilaterally establish and enforce a Minimum Advertised Price (“MAP”) policy on all TUFFLOK products. The MAP policy will apply to all U.S. and Canadian distributors. The MAP policy shall work under the following guidelines:
- The MAP for all TUFFLOK products shall be no less than fifteen percent (15%) off the Manufacturer’s Suggested List Price (MSRP) as listed in the then-current TUFFLOK End User Price List. The price list is provided to TUFFLOK distributors quarterly. MAP is unilaterally established by TUFFLOK for all products and may be adjusted by TUFFLOK at its sole discretion. The MAP may be changed from time to time at TUFFLOK’s sole discretion.
- The MAP policy applies to all advertisements of TUFFLOK products in any media, including, but not necessarily limited to, flyers, posters, coupons, mailers, inserts, newspapers, magazines, catalogs, mail order catalogs, internet or similar electronic media, television, radio, and public signage. The MAP policy does not apply to in-store advertising that is not distributed to the customer.
- “Bundling” or the inclusion in advertising of free or discounted products (whether made by TUFFLOK or another manufacturer) with a product covered by the MAP policy would be contrary to the policy if it has the effect of discounting the advertised price of the covered product below the MAP.
- Pricing listed on an internet site is considered an “advertised price” and must adhere to the MAP policy. Once the pricing is associated with an actual purchase (an internet order), the price becomes the selling price and is not bound by this MAP policy. Statements such as “we will match any price” and “call for price” are acceptable.
- MAP applies only to advertised prices and does not apply to the price at which the products are sold or offered to an individual contractor within the distributor’s location, over the telephone, or through a “bid” process. Distributors of TUFFLOK products remain free to sell them at any price they elect.
- MAP does not establish maximum advertised prices. All dealers and distributors may offer TUFFLOK products above the MAP price for such products.
- TUFFLOK’s MAP policy does not in any way limit the ability of any distributor to advertise that “they have the lowest prices” or they “will meet or beat any competitors’ price,” that users of the product should “call for a price” or phrases of similar import as long as the price advertised or listed for the products is not less than MAP.
- From time to time, TUFFLOK may discontinue models, promote specific products, or sell “close out” products or “B stock” inventory. In such events, TUFFLOK reserves the right to modify or suspend the MAP for the affected products by notifying all distributors of such change. TUFFLOK further reserves the right to unilaterally adjust the MAP for all or certain products at its sole discretion upon seven (7) days advance written notice to the distributors, provided that such changes shall apply equally to all distributors of TUFFLOK’s products.
- If a distributor chooses not to follow the MAP policy, TUFFLOK will unilaterally impose sanctions. Intentional and/or repeated failure to abide by this policy will result in the termination of distributorship. TUFFLOK does not intend to do business with distributors who compromise the perceived value of TUFFLOK and its products.
- AirGap may monitor the advertised price of distributors, either directly or via the use of third-party agencies. Third-party agencies retained by TUFFLOK may engage in the monitoring of any advertisements. TUFFLOK shall be solely responsible for determining whether a policy violation has occurred, communicating decisions to distributors regarding the policy, and receiving any communication regarding sanctions imposed under this policy.
TUFFLOK SALES PERSONNEL OR OTHER EMPLOYEES HAVE NO AUTHORITY TO MODIFY OR GRANT EXCEPTIONS TO THIS POLICY. Therefore, all questions or comments regarding this MAP policy shall be directed to the legal department at TUFFLOK at 500 Jefferson St., Placentia, CA 92870. TUFFLOK has unilaterally established this MAP policy to help ensure the legacy of TUFFLOK as a top producer of high-performance mechanically attached fittings (MAF) for VRF/VRV systems to protect the reputation of its name and products. The MAP policy also ensures distributors are incentivized to invest resources into services for TUFFLOK’s customers. TUFFLOK reserves the right at any time to modify, suspend, or discontinue the MAP policy in whole or in part or designate promotional periods during which the terms of the policy change or select periods during which the policy is not applicable. Policy modifications shall be made available on TUFFLOK’s website at www.tufflok.com.