Minimum Advertised Price Policy
Effective July 1 st , 2024, KYUNG CHANG INDUSTRY USA INC, a Nevada corporation d/b/a KCI
USA (“KCI”) is updating its Minimum Advertised Price Policy (“MAP Policy”). KCI has determined that this MAP Policy is necessary to protect the quality of KCI brand by promoting high quality marketing with consistent customer service across current and future markets where
KCI products are sold.
The MAP Policy ensures that Resellers are incentivized to make sufficient investments in marketing and educating KCI customers.
Our MAP Policy will efficiently resolve any concerns that may arise after the sale of a KCI product. Quality marketing and education programs are essential in KCI brand loyalty and to instill confidence in KCI products among consumers. As we continue to grow our brand, KCI USA will focus on quality marketing and customer service. As a recognized leader in the firearms magazine industry, we want to maintain our relationships with our Wholesalers and Distributors to grow their customer bases. When the KCI brand succeeds, KCI Resellers benefit! The MAP Policy eliminates free riding by Retailers who do not comply or do not follow KCI’s marketing, customer, and pricing policies.
KCI’s MAP Policy ensures the quality of KCI’s products, as well as ensuring reasonable and consistent costs for KCI’s Resellers. In turn, Resellers can benefit by growing their customer base, returning costumers, and protecting profit margins. KCI considers Resellers as part of the KCI team. KCI and Resellers can continue to be competitive in the firearms industry by working together.
Unilateral Policy
KCI Resellers are free to resell KCI products at your own respective MSRP price. Effective July 1 st , 2024, KCI will cancel all orders and indefinitely terminate any supply relationship with a Reseller that KCI determined has advertised, offered, or sold KCI’s products for less than the Minimum Advertised Price (“MAP”). For such respective products, set forth is the attached product line pricing list, Exhibit A (as amended from time to time). Please note, for International Resellers, the respective MAP must comply with the U.S. dollar equivalent of the currency in any foreign market based on the average exchange rate of the foreign currency as well as the average of the previous three (3) years.
Resellers selling in such foreign markets are responsible to ensure that the pricing of KCI products comply with the terms of this MAP Policy.
This MAP Policy is non-negotiable. Upon violation of KCI’s MAP Policy, we will contact your Wholesaler and Distributors. KCI will immediately cease product shipment to the violating Reseller.
Modification
KCI may at any time modify, suspend, or discontinue the MAP Policy in whole or in part, or specify certain periods during which the
policy is inapplicable, including periods of sales and marketing events. In the event of such modifications to the MAP Policy, KCI shall timely
notify its Resellers and shall provide sufficient details to ensure that Resellers can adjust their prices accordingly.
MAP Policy Requirements
1. Resellers must not price KCI Products below the MAP, but no maximum price is prescribed by KCI.
2. Resellers must not advertise, through any medium, or sell, any KCI products at a price below such products’ respective MAP.
3. Resellers may offer discounts, sales, and/or promotions, provided that the final advertised price of any KCI product does not fall below the respective products; MAP pricing.
A. Website features such as “click for price”, automated “bounce-back” pricing emails, pre-formatted email responses, forms, and
automatic price display for any items before being placed in a customer’s shopping cart, and other similar features are communications initiated by the dealer (rather than by the customer) and thereby constitute “advertising” under the MAP policy.
B. The MAP policy does not apply to any in-store advertising that is displayed only in a physical brick-and-mortar location and not distributed to any customer(s) outside of the brick-and-mortar location.
4. KCI may sell KCI products directly to consumers at any time at any price, and KCI is not bound by this MAP Policy.
5. KCI does not restrict a Reseller’s ability to advertise that such Reseller has “the lowest price”. KCI does not otherwise restrict a Reseller’s ability to match a lower price of another seller of KCI products, if the sales price of such products is not below the MAP, set forth herein.
6. ALL Resellers, by reselling KCI USA products, are agreeing to adhere to this MAP Policy.
7. KCI reserves the right to immediately terminate its relationship with any Reseller who fails to abide by this MAP Policy.
Thank you for your continued business and in your cooperation with KCI USA’s MAP Policy.
KYUNG CHANG INDUSTRY USA INC
180 Cassia Way Suite 510
Henderson 89014
Please direct any questions and concerns to brandprotection@kcius.com.