Trigg Laboratories has decided to move to direct tier pricing.
CEO and founder Michael Trigg penned a memo explaining the company’s decision.
Trigg cited Walmart and Amazon’s e-commerce prowess as a reason for the change, pointing out the profit margins for Wet, which manufactures lube, were getting too small.
He also pointed out rising costs.
“Expenses for representatives and brand managers who are constantly traveling on the road has become a large additional cost,” says Trigg in an open letter to the adult retail industry. Manufacturers feel pressure to contribute ever-larger sponsorship fees. Internally, the expansion of marketing initiatives puts an increasing financial burden on companies in this new marketplace. The industry landscape in which we find ourselves has weighed heavily on me and what it means for both my company and my business partners.”
The change is set to start on Monday and Trigg says the discount from wholesale will be based on volume.
If you are a US distributor, I hope you will continue to carry Wet as a secondary brand. I hope you will understand how difficult this decision was for me. I cherish the friendships we’ve built over the last three decades. However, we must all ultimately make decisions that we hope are in the best interest of our businesses.
For more information, visit buywetdirect.com.
