im amazed that i got a reply then during the end of the xmas hols i emailed her before, about how ive been treated over terms and conditions so mayb thats why she replied i got the usual automated answer then i got this.
Dear Judith
Thank you for your email. I felt compelled to respond immediately and at length even though it is the Holiday weekend as I appreciate your forwarding the link to me. I am familiar with the site and the ongoing back and forth that takes place. As you know, it is very easy to post whatever comments anyone wishes to, and it can become a 'grenade throwing' exercise in both genuine and also hateful comments. I prefer to always respond to emails I receive directly, as this usually indicates the senders desire to actually solve a problem instead of just sounding off in a forum about it. There are various complaints in the string that you sent to me, and so I'm not absolutely sure of the ones you 'wholeheartedly agree with' and if I miss anything, we will want to address it, so let us know!
I understand concerns about the 2010 price increase. But, as you should know already from our UK team, we will absorb the January 2011 VAT increase and we are holding prices through next year, so be assured that VAT increase will not affect you. However, as you know, our manufacturing costs have gone up and as we are continually looking to improve our formulae and incorporate newer ingredients and cosmeceutical grade raw materials, they have increased significantly. In addition, because we manufacture in Southern California, we have incurred increased shipping and transport costs globally, which although we have tried to absorb, it was necessary to increase prices.
Let me assure you that we are committed to the professional Skin Therapist. I understand and echo the frustration with the internet discounting. Contrary to some that would badmouth Dermalogica, it is not something we have encouraged, supported or been complicit in. In fact, under the European Union Laws, there is almost nothing we can do to prevent it. We have spent 25 years building that brand with Skin Therapists such as yourself, and have never viewed our success as some kind of short term ruse to make money. If that were the case, we would have sold on QVC or similar years ago! We have spent hundreds of thousands of dollars and many years, trying to protect our brand image and integrity. We have spoken to and retained legal counsel in every country we sell in, and we are severely restricted in what we can actually do. Some years ago, we attempted to request our accounts in Australia maintain uniform pricing. We soon learned that not only were we naïve in that intention, we incurred a lawsuit filed with the Australian Government by one of our stockists who wished to discount the prices. We fought the suit in their Superior Court in Canberra, and lost it, and we were fined over a quarter million dollars for trying to prevent discounting. The Australian laws work hard to give the consumer the best price available, and prevent manufacturers from protecting their stockists who sell at the recommended retail price. In Europe, Estee Lauder, Clarins and LOreal have been sued and fined millions of Euros in the past few years for attempting the same thing. In the USA we have some opportunities to at least prevent lower prices from being posted online or openly advertised, but no such protection exists in the UK or the EU.
We are not legally allowed to dictate pricing in any EU country including the UK. Thats the fact. Companies who tell you that they DO prevent discounting are outside of the law, often because they either do not know the law, or they are simply too small and below the radar to incur legal action. I assure you, that if we attempted this, our competitors would be the very ones who would report it. Under the EU laws, we are also prevented from stopping any account who buys Dermalogica from us from selling it in whatever method they wish. In other words, if someone buys Dermalogica to sell in their salon, we cannot stop them from selling online. That is the law. Any company who says they ARE preventing online sales either do not know the law, or they are simply too small and below the radar to incur legal action. Are you frustrated? You bet. Am I frustrated. You BET! But again, the EU is determined to allow the consumer to purchase at the most competitive price, and the laws do not protect the brand or the stockist they advantage the consumer. Thats just the fact of the matter.
So what CAN we do to grow our business and help you grow yours? We are working now on incentives and rewards to encourage the customers to buy in a bricks and mortar account such as yours. Not by preventing them from buying online which would be illegal, but by rewarding them for coming to you. We have worked over the years to develop hands-on core concepts such as FaceMapping and SkinBar and Dermalogica events, to ensure that the Skin Therapist is squarely involved in the brand identity and we print the fact that FaceMapping is recommended on every carton that is sold. Our goal for 2011 is how can we strengthen the success of the Professional Skin Therapist in each of our markets. I have always been committed, and I still am, to empowering our entrepreneurial Skin Therapists, 98% of whom are self employed women, and of which both you and I am a part.
I hope that you can sense my own frustration at the situation. I know that is cold comfort as we face a weakening economy and pressure and hardship in building our businesses during this period. But I assure you, I am not oblivious nor am I so arrogant, that I dont think it important to remember who brought us to the party. I understand if there are Skin Therapists who feel, despite knowing the constraints put upon us, they simply cannot continue to support Dermalogica. It breaks my heart and saddens me after so many years in the business and taking so long to build the brand. However, I do not blindly accept it, and I am committed to taking Dermalogica to continued strength through whatever legal means I can, and in turn, securing the success of the Skin Therapists who have taken the journey with us. Dermalogica has built its success, and the success of the Skin therapists who use and recommend it, by being imaginative, innovative, hard working and focused. That has not changed. Clients still want the very best skin that they can achieve, and together with professionals such as yourself, Dermalogica delivers that to them. For that reason, we are so sought after and demanded by the consumer, and for that same reason, we will remain determined to deliver continued growth.
I most certainly hope that you will be part of that journey with us as you have been in the past, and for which I very much thank you,
Best regards,
Jane
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