New Lexington booklet outlines dealer policies
Powell Slaughter -- Furniture Today, November 11, 2002
Lexington, N.C. — Lexington Home Brands outlines its revised dealer policies and procedures in a new booklet covering sales and distribution, the Internet and suggested minimum prices.
The booklet, which also outlines the manufacturer's new warranty, is being mailed to all Lexington retailers.
"Our revised and updated sales and distribution policies have been created in response to requests from our dealers and sales representatives," said Stan Payne, vice president, legal and administration. "These have been published in a convenient format to help all involved better understand our stated policies."
The company recently filed a federal lawsuit to underscore its commitment to the policies. The suit accuses an unauthorized dealer with misrepresenting Lexington's product over the Internet. Several lawsuits were filed under similar circumstances last year.
All were successful in stopping the activity, and also exposed authorized dealers for transshipment of Lexington product, Payne said. Additionally, the company recently discontinued selling a collection to a North Carolina dealer whose sales practices conflicted with Lexington's suggested minimum price policy.
Payne declined to name the retailer.
Developed to help floor salespeople understand Lexington's SMRP, the new booklet includes a section entitled, "What Is a Suggested Minimum Retail Price Policy and How Does It Work?" Three pages of questions and answers follow the booklet's SMRP section.
To ensure consistent interpretation of SMRP, retailers are instructed to direct all questions to Payne.
The booklet includes Lexington's just-announced limited warranty on case goods, casual seating and occasional products, currently slated to apply to products delivered after Jan. 1, 2003. Upholstery products will continue to be under a separate warranty.
Acknowledging the growth of Internet use, the revised Internet policy aims to facilitate creation of Web sites by authorized Lexington Home Brands dealers.
