We believe that offering discounts greater than 10 per cent from our suggested retail price harms our reputation.
The purpose of this letter is to restate and clarify e-Scential Beauty’s policy regarding pricing of its products. It is our policy not to supply our products in circumstances in which they will be sold at discounts greater than 10 per cent from the suggested retail price. This policy is based on our long term effort to build a strong quality brand that is accepted by the marketplace.
There are legal limitations that prohibit us from agreeing with our retailers on the price at which they resell our products. In contrast, we are permitted to announce a pricing policy and to cease to deal with retailers who do not comply with that policy. Accordingly, we will cease dealing with retailers who price our products at discounts greater than 10 per cent from the suggested retail price.
We believe that this policy is in the best interests of all of our stakeholders including our retailers.
In addition we will cease to do business with retailers who sell certain of our brands on auction websites like ebay. The following brands may not be sold on auction websites without authorization directly from the manufacturer of the product.
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