As a business owner, you might think you have complete control over your goods and services. The unfortunate truth is that there is an elusive “gray market” that aims to make money off of your hard work.
The “gray market” refers to a web of unethical entrepreneurs that resell unauthorized items. This practice is detrimental to all businesses, but especially to small companies still building their name. Use these tips for keeping your products off the gray market to protect your operations.
Eliminate Damaged Goods
One way product poachers make a profit off of your work is by reselling damaged goods. It’s surprisingly easy to get your hands on gently worn items and sell them at a discounted rate. Selling broken products hurts your brand when people associate low-quality items with your business.
You can avoid this problem by using an outdated product destruction and disposal service. Destroying your damaged goods instead of tossing them removes them from the market. This makes it impossible for anyone else to resell your items.
Switch Up Your Packaging
Scammers get away with their schemes by reselling items in different locations. One tip for keeping your products off the gray market involves switching up your packaging. Instead of using standard box designs, create a variety dependent on the area.
This tactic works by creating doubt in customers. Buyers are less likely to purchase items they don’t find familiar. If unethical retailers get their hands on your products and try selling them in a location that doesn’t recognize their packaging, they won’t have much success.
Use MAP Monitoring Software
It’s almost impossible to defend against the gray market if you don’t know where to look. Using software like MAP monitoring makes identifying fraudulent activity simple.
MAP (minimum advertised price) monitoring tracks products in real time and shows the lowest rate they’re selling for. While some distributors have the authorization to offer discounted prices, some don’t. It’s easy to see who is selling your products unethically when you can see exactly where the problem occurs.
Focus on Customer Education
The best way to keep your items off the gray market is by prioritizing customer education. Make sure your clients know how to recognize which products are legit and which ones aren’t.
Target your email campaigns to focus on partnered businesses and clarify which physical and virtual locations you work with. Customers are more likely to shop with reputable retailers to avoid scam behavior, so make sure they know what to look out for.
Don’t let unauthorized sellers make a name for themselves off your products. Use these tips to safeguard your brand and run a reliable, trustworthy business.