Article Number: 3650
Anderson Hardwood sets minimum advertised pricing policy
By Sarah Zimmerman
CLINTON, S.C.—After last year’s Supreme Court ruling to reverse the 97-year-old ban on price fixing (FCNews Aug. 6/13, 2007), Anderson Hardwood Floors is one of the first to announce a new advertising policy, establishing a “minimum advertised price” on all Anderson Family of Brands’ products across all medias.
Prior to last August, when the Supreme Court upended, by a 5-4 margin, a ban on price fixing, manufacturers could not punish retailers for selling at cut-rate prices because it was a direct violation of the Sherman Antitrust Act, established in 1911. Now, manufacturers and distributors can agree on and set minimum retail prices and terminate business relationships with retailers that do not abide by them.
According to Anderson’s new policy, dealers can either advertise the mill’s products at or above the set minimum advertised selling price, or advertise “call for pricing,” in which case they can quote customers any price they like verbally. If an advertiser violates the new policy, the dealer’s business relationship with Anderson will be terminated. Also, if any dealer is found selling Anderson products to another retailer not authorized to sell the brand, that dealer’s business relationship and license with Anderson will be immediately suspended.
“Anderson does not want to restrict any retailer in any media from a sales opportunity, but we feel it is critical to continue to protect our luxury brand position and support retailers that invest in our products by allowing a profit to be earned,” explained Jeff Sills, Anderson’s COO.
The company’s goal is not to dictate what prices retailers sell Anderson products for through “price fixing,” added John Woolsey, vice president of marketing and merchandising, but rather to assure that the popularity of the brand does not lead to “bait-and- witch” tactics. “All this policy does is create a level playing field, allowing retailers to focus on our products based on added value not on price,” he said. “Retailers will tell you traffic is off so they need to maximize every potential sale that walks in the door. You don’t do this by giving profit away and reducing margins...That means you have to sell value to make the sale, and Anderson has a value story that works.”
And, although the Supreme Court ruling last year—which involved the sale of handbags in Texas—leading to the reversal of the 1911 antitrust law, received mixed reviews, John Patterson, Anderson’s vice president of sales, said so far, the company is excited by the policy’s positive feedback. “I have been amazed at the response from our customers. Each retailer has the same goal—make a profit. Our new policy allows every retailer the opportunity to earn a fair profit without dealing with predatory pricing during the shopping process. Our distributor and retailers are embracing the policy.”
Sales staff and management alike are giving the program a thumbs-up, according to, Bob Eady, vice president of T & L Distributing based in Houston. He explained after dealing with advertised prices, particularly on the Internet, that make no sense and can’t even cover a retailer’s minimum operating cost, “the new policy will allow our retailers and sales team to focus on proactive sales initiatives.”
Don Herndon of Classic Wood Flooring in Melbourne, Fla., said it’s about time a major wood brand stepped up to the table with a policy to assist the retailer in earning a profit. In business with Anderson for many years, Herndon said Classic can now sell the brand “not only with the assurance our customers will be satisfied, but also with the guarantee that we will earn an acceptable margin.”
Similarly, Darrin Braunstein, COO of Worldwide Wholesale in Edison, N.J., said he recently contacted Anderson’s management team with a concern regarding low advertised prices he came across on a flooring Internet site.
“Anderson, under its new minimum advertised selling price policy, responded swiftly to correct the issue,” he said. “This program gives Worldwide the ability to offer the brand with the confidence that another retailer will not be advertising the same products at prices below a reasonable minimum advertised price.”
The company prides itself on providing excellent value, and although it’s new to the Anderson brand, Braunstein feels this is an example of how the manufacturer supports its local retailers.
On that note, Sills said the hardwood mill is receiving several similar inquiries per week from the industry in regards to companies violating the policy. “Each company is individually contacted by our distributor, and, in some cases, an Anderson associate to inform the advertisers of the policy guidelines,” he explained. “We will impose the full restriction outlined in the policy to any advertiser not in compliance with the program.”
A copy of Anderson’s policy can be obtained by contacting the company at 864.833.6250 or www.andersonfloors.com.
Editor’s note: Though Anderson is the first flooring mill to take action setting minimum advertised pricing, FCNews has been informed that several other manufacturers are following suit. Stay tuned in future issues for updates.
CLINTON, S.C.—After last year’s Supreme Court ruling to reverse the 97-year-old ban on price fixing (FCNews Aug. 6/13, 2007), Anderson Hardwood Floors is one of the first to announce a new advertising policy, establishing a “minimum advertised price” on all Anderson Family of Brands’ products across all medias.
Prior to last August, when the Supreme Court upended, by a 5-4 margin, a ban on price fixing, manufacturers could not punish retailers for selling at cut-rate prices because it was a direct violation of the Sherman Antitrust Act, established in 1911. Now, manufacturers and distributors can agree on and set minimum retail prices and terminate business relationships with retailers that do not abide by them.
According to Anderson’s new policy, dealers can either advertise the mill’s products at or above the set minimum advertised selling price, or advertise “call for pricing,” in which case they can quote customers any price they like verbally. If an advertiser violates the new policy, the dealer’s business relationship with Anderson will be terminated. Also, if any dealer is found selling Anderson products to another retailer not authorized to sell the brand, that dealer’s business relationship and license with Anderson will be immediately suspended.
“Anderson does not want to restrict any retailer in any media from a sales opportunity, but we feel it is critical to continue to protect our luxury brand position and support retailers that invest in our products by allowing a profit to be earned,” explained Jeff Sills, Anderson’s COO.
The company’s goal is not to dictate what prices retailers sell Anderson products for through “price fixing,” added John Woolsey, vice president of marketing and merchandising, but rather to assure that the popularity of the brand does not lead to “bait-and- witch” tactics. “All this policy does is create a level playing field, allowing retailers to focus on our products based on added value not on price,” he said. “Retailers will tell you traffic is off so they need to maximize every potential sale that walks in the door. You don’t do this by giving profit away and reducing margins...That means you have to sell value to make the sale, and Anderson has a value story that works.”
And, although the Supreme Court ruling last year—which involved the sale of handbags in Texas—leading to the reversal of the 1911 antitrust law, received mixed reviews, John Patterson, Anderson’s vice president of sales, said so far, the company is excited by the policy’s positive feedback. “I have been amazed at the response from our customers. Each retailer has the same goal—make a profit. Our new policy allows every retailer the opportunity to earn a fair profit without dealing with predatory pricing during the shopping process. Our distributor and retailers are embracing the policy.”
Sales staff and management alike are giving the program a thumbs-up, according to, Bob Eady, vice president of T & L Distributing based in Houston. He explained after dealing with advertised prices, particularly on the Internet, that make no sense and can’t even cover a retailer’s minimum operating cost, “the new policy will allow our retailers and sales team to focus on proactive sales initiatives.”
Don Herndon of Classic Wood Flooring in Melbourne, Fla., said it’s about time a major wood brand stepped up to the table with a policy to assist the retailer in earning a profit. In business with Anderson for many years, Herndon said Classic can now sell the brand “not only with the assurance our customers will be satisfied, but also with the guarantee that we will earn an acceptable margin.”
Similarly, Darrin Braunstein, COO of Worldwide Wholesale in Edison, N.J., said he recently contacted Anderson’s management team with a concern regarding low advertised prices he came across on a flooring Internet site.
“Anderson, under its new minimum advertised selling price policy, responded swiftly to correct the issue,” he said. “This program gives Worldwide the ability to offer the brand with the confidence that another retailer will not be advertising the same products at prices below a reasonable minimum advertised price.”
The company prides itself on providing excellent value, and although it’s new to the Anderson brand, Braunstein feels this is an example of how the manufacturer supports its local retailers.
On that note, Sills said the hardwood mill is receiving several similar inquiries per week from the industry in regards to companies violating the policy. “Each company is individually contacted by our distributor, and, in some cases, an Anderson associate to inform the advertisers of the policy guidelines,” he explained. “We will impose the full restriction outlined in the policy to any advertiser not in compliance with the program.”
A copy of Anderson’s policy can be obtained by contacting the company at 864.833.6250 or www.andersonfloors.com.
Editor’s note: Though Anderson is the first flooring mill to take action setting minimum advertised pricing, FCNews has been informed that several other manufacturers are following suit. Stay tuned in future issues for updates.
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