2007 Upper Deck Distribution Program Bullet Points
Guideline to assist Upper Deck authorized distributors and retailers in better understanding our new distribution program going forward.
Beginning in April of 2007
Tuesday January 23, 2007
The following point-form guideline is to assist Upper Deck authorized distributors and retailers in better understanding our new distribution program going forward.
Commencing in April of 2007, the Upper Deck Company will be implementing a new program designed with the best interests of those parties with a long-term vested interest in our sports card business. It has been carefully constructed after an exhaustive study of our industry and other business models, to take the next step in stabilizing and growing consumer interest and consumption of our products, as well as to strengthen the brick and mortar hobby stores everywhere and to improve the collector experience.
Hopefully the following details will answer your questions and prepare everyone for the new program!
- Beginning in April of 2007, our Authorized Distributors and Hobby Direct business will be selling to 'Brick and Mortar' hobby shops only. A hobby shop is defined as a store open for business 5 days a week or more, and one in which the majority (50%+) of their business is done in the physical location.
- It is our intention to have our Authorized Distributors as the primary wholesale source for our sports products, and our brick & mortar hobby stores as the primary source for consumers to buy, sell and trade our sports products. This is in the spirit of building a normal, mature, functioning distribution model, with clearly defined 'wholesale' and 'retail' levels.
- Our Authorized Distributors will be required to follow this exciting new program for 60 days from the release date of each or our sports card products. After the 60 days, they will be permitted to market products as they see fit, once clearance has been given from Upper Deck.
- There are many cases of hobby retailers who also resell products to other hobby stores and retail stores. In order to qualify as an authorized Upper Deck retailer, they will need to focus on their retail sales and cease distribution at the wholesale level. All UD sports card product MUST be sold by stores to the end consumer only. We cannot make any exceptions.
- This program is designed to help strengthen hobby stores, distributors, and the hobby in general. Stronger margins and longer shelf life of products results in everyone being able to re-invest and grow their respective businesses!
- This program does not pertain to Upper Deck Entertainment products.
- Distributors may submit to Upper Deck, for prior approval, a customer that they deem falls outside these clearly defined guidelines - an example would be a business operation that breaks large quantities of cases to make team sets for resale to league arenas and team stores, sell singles, etc.
- We strongly encourage all of our invested partners, distributors and retailers alike, not to hesitate to contact us to clarify any of the programs parameters.
- We will require our authorized distributors and brick and mortar retailers to sign a document outlining our program and agreeing to its terms. This is no different than any supplier-distributor-retailer standard in almost any other industry.
- Strong penalties will result in the non-adherence of the program, including but not limited to termination of account with Upper Deck.
Ours is a business that is very young. We have allowed a large 'grey market' to evolve over the last decade or so and with it all of us have seen shrinking sales, margins, shelf-lives, customers and brick and mortar hobby shop numbers. As many, many other industries have done in the past, we are committed to a clear distribution and resale policy and a new direction in which we all can profit! We realize there may be some short-term frustration and perhaps confusion as change is often resisted, but we are very confident that this program will lead to better products, improved sales and margins, healthier hobby shops and a more satisfied consumer.
* Upper Deck reserve the right to change any and all aspects of this program without notice. | 
