Effective January 1, 2015
Retailers and distributors are permitted to sell only
Gateway Drum Smokers outlined on the MAP Schedule.
Resellers are prohibited from repainting, adding to, or
altering the Gateway Drum Smoker® from its original appearance for sale. The removal of the Gateway Drum Smoker® brand
logo from any Gateway Drum Smoker® is strictly prohibited and will result in
loss of ability to purchase Gateway Drum Smokers.
It is highly recommended but not required that Resellers
hold Gateway Drum Smokers as the only line of UDS model in their retail
location(s). Gateway BBQ Company, LLC
has the right to refuse or terminate the Resale Agreement at any time if Gateway
BBQ Company, LLC deems the Reseller’s UDS product line is too saturated. In addition, Gateway BBQ Company, LLC has the
right to refuse or terminate the Resale Agreement at any time if Gateway BBQ
Company, LLC deems the Reseller is carrying Gateway Drum Smokers for any other
reason than to sell Gateway Drum Smokers to consumers.
Resellers cannot sell to any third party merchandisers that
plan on regularly reselling the Gateway Drum Smokers via any of the following
channels: third party websites, online
auctions, blogs, forums, or social media.
Email offers to Reseller’s customer list are permitted as long as MAP is
Resellers are always free to price-match any offer that is
current on the www.gatewaydrumsmokers.com. However, Gateway BBQ Company, LLC will not
typically offer additional discounts or incentives to the reseller during its direct
Upon Gateway BBQ Company, LLC’s acceptance of the Resale Application,
Resellers must sign a Reseller Non-Compete Form before the Resale Agreement
will be deemed effective. Failure to
sign the Reseller Non-Compete Form will result in a voided Resale Application
and a denied Resale Agreement.
Distributors, dealers, and resellers are required to place an
initial minimum order value of at least $2,500. Minimum order quantity of one
master carton equal to (6) Gateway Drum Smokers.
All prices are subject to change within 30 days written
notice. Gateway BBQ Company, LLC
reserves the right to refuse to sell or extend credit. Gateway BBQ Company, LLC requires that the
buyer resell its products to consumers at the buyer’s retail location(s) within
the United States. Gateway BBQ Company,
LLC prohibits Dealer Sales of Gateway Drum Smoker® products on Internet auction
sites, such as eBay add prohibits trans-shipping of Gateway Drum Smoker®
products between dealers.
Lines of Credit are not yet available through Gateway BBQ
Company, LLC. Credit Card payments will be required at time of purchase.
The prices resellers choose to advertise or offer to
customers is entirely their decision, but please refer to the MAP Program in
section 3 regarding Minimum Advertised Prices.
Inventory returns are not accepted. Reseller may withdraw
from reseller status at any time. Any
remaining inventory of Gateway Drum Smoker® products in Reseller’s possession
may continue to be sold, but must be done so in accordance with MAP. A legitimate close-out of inventory may be
priced below MAP, but cannot be advertised on the web.
2. ORDERING & DROP SHIPMENT
Once the retail sales application has been approved, resellers
may begin the order process by creating a dealer login-in on the Gateway Drum
Smoker website (www.gatewaydrumsmoker.com).
FOB pricing will be visible for all inventory orders. Drop-ship orders are considered a
commission-able item and FOB pricing will not apply. Commission will be a set amount determined by
Gateway BBQ Company, LLC. MAP pricing will still apply to all items. All dealer orders, including inventory and
drop-ship orders, must be placed online. It is recommended that inventory
orders be placed separate from drop-ship orders. Custom Gateway Drum Smoker® orders are not
permitted by dealers at this time.
Drop-Ship orders must contain
consumer’s address in the shipping address.
Standard shipping rates from Gateway BBQ Company, LLC will apply and is
highly recommended dealers pass on these rates to consumers.
MINIMUM ADVERTISED PRICE (‘MAP’)
Gateway BBQ Company, LLC has invested a
substantial amount of time and money advertising its exclusive line of Gateway
Drum Smokers. In addition, Gateway BBQ Company, LLC has invested heavily in Research
& Development and positioned Gateway Drum Smokers as affordable,
high-quality smokers with customization features and benefits that Gateway Drum
Smoker® customers desire and seek out.
In addition, Gateway BBQ Company, LLC
believes, and it has been consistently demonstrated, that the successful sale
of Gateway Drum Smokers involved as deep understanding of the features and
benefits of the Gateway Drum Smoker® and a commitment to enhancing the
consumer’s outdoor cooking experience. We support our retailer’s efforts to do
so with advice and support to create a staff knowledgeable in the line of
Gateway Drum Smokers. The Gateway BBQ Company, LLC MAP Program is designed to
protect the value of Gateway Drum Smokers and protect investments made by Gateway
BBQ Company, LLC and its retailers.
The Gateway BBQ Company, LLC MAP Program
applies to all Gateway Drum Smoker distributors, dealers, and resellers of
Gateway Drum Smokers (“Resellers”).
2. Summary of Program
Gateway BBQ Company, LLC has
adopted, in its business judgment, the MAP program set forth in this
communication. The MAP that corresponds
with each Gateway Drum Smoker® product covered by this Program (“Covered
Gateway Drum Smokers”) is described in Gateway BBQ Company, LLC’s then-current
MAP Schedule (as defined herein). A
violation of this Program occurs when a Reseller advertises a Covered Gateway
Drum Smoker® product below its MAP. The Gateway Drum Smoker® MAP Program
applies only to advertised prices and does not relate to the actual sales price
of any Gateway Drum Smoker® product.
Resellers are free to set the selling price of Gateway Drum Smoker®
3. Applicable Media
The Gateway Drum Smoker® MAP Program
applies to traditional media such as flyers, posters, coupons, mailers,
inserts, newspapers, magazines, catalogs, mail order catalogs, television, and
radio. The Gateway Drum Smoker® MAP Program also applies to internet and
internet related electronic media such as email newsletters, email
solicitations, and social media posts, pages, etc. and Reseller websites and
third party websites. Any price information relating to Covered Gateway Drum
Smoker® products on an internet website which can be accessed directly through
any hypertext link or by any other methods which uses the hypertext transfer
protocol (http) is considered to be advertising for purposes of this
Program. Automated email responses to
customer pricing requests are also considered advertising. Any prices shown in the shopping cart on a
Resellers’ Website are considered advertised prices and are subject to this
Program until the consumer is committed to purchase the Covered Gateway Drum
Smoker® product(s). Emails sent in
response to specific customer inquiries about a particular Covered Gateway Drum
Smoker® products are not considered advertising nor is a phone number or hotline
set up to provide verbal responses to specific customer inquiries about pricing.
The Gateway Drum Smoker MAP Program is not
applicable to any store advertising that is displayed in the store and is not
distributed to any customer(s) other than while the customer is visiting a
physical store. The MAP Program does not
apply to shelf talkers, price tags or window displays. However, advertising any of the Covered
Gateway Drum Smokers below it or their respective MAP on exterior store banners
is a violation of the MAP Program.
Resellers advertising any Covered
Gateway Drum Smoker® product below its MAP set by Gateway BBQ Company, LLC will
be subject to termination (indefinitely) of buying privileges for Gateway Drum
Smoker® products. Gateway BBQ Company,
LLC reserves the right to determine whether a violation of the MAP Program has
taken place, and it will do so in its sole and absolute discretion and
Each Covered Gateway Drum Smoker® product must
be advertised at its MAP or higher.
Attached is the MAP schedule effective January 1, 2015 which identifies
all Covered Gateway Drum Smokers (“MAP Schedule”). Gateway BBQ Company, LLC reserves the right
to modify the MAP schedule from time to time and will provide thirty (30) days
notice of any such changes.
In order to permit identification of the
specific unit(s) in an advertisement, the Gateway Drum Smoker model numbers
must be shown when advertising Gateway Drum Smoker® products.
Assembly (of caster wheels) and free delivery
offers are acceptable discounted offers that will not be considered as lowering
the advertised price below MAP. However,
advertising a price for these services and then showing the value of these
services as free or discounted will be determined in violation of the MAP
Program is the advertised value of these services implies a price lower that
For bundled product advertising, Resellers may
not offer implied savings below MAP, whether or not the price of both products
is listed. Any “gift with purchase”
promotions and advertising must exclude Covered Gateway Drum Smoker® products.
Should a Reseller advertise “open a store credit
card and get x% off purchases,” the Reseller must state “excludes Gateway Drum
Smokers” or “does not apply to Gateway Drum Smokers” in the advertisement if
the implied price is lower than any MAP.
Any other storewide or category event savings must specifically exclude
Covered Gateway Drum Smoker® products if the implied price is lower than any
Any Reseller who advertises “meet or beat x%”
online or at a store level must exclude Covered Gateway Drum Smoker® products from
the advertisement in order to be in compliance with the MAP Program. Resellers should use statements such as
“excludes Gateway Drum Smokers” or “does not apply to Gateway Drum Smokers” in
Discontinued Gateway Drum Smokers can only be
removed from the MAP Schedule and the MAP Program by Gateway BBQ Company, LLC. A decision by Gateway BBQ Company, LLC to
discontinue any specific Gateway Drum Smoker does not necessarily mean that the
discontinued Gateway Drum Smoker® is no longer subject to the MAP Program.
Gateway BBQ Company, LLC reserves the right to
change, modify, or discontinue the terms of the MAP Program at any time within
its sole discretion.
Gateway BBQ Company, LLC’s interpretation of the
MAP Program and its application controls.
The terms of the Gateway Drum
Smoker® MAP Program are confidential and Resellers should not discuss the
Program with, or disclose the Program to, any third parties.