MAP Quest: Fun Factory on Upholding MSRP in Retail

Fun Factory CEO Frederic Walme recently sat down with XBIZ to discuss the company’s latest efforts in enforcing a Minimum Advertised Price Policy to reduce undercutting on Amazon.com and among competing retailers.

What is the buzz about Fun Factory’s new MAP enforcement “movement”?

MAP for us is a way of preserving the integrity of Fun Factory, ensuring its longevity and building its credibility. —Frederic Walme, CEO of Fun Factory.

Over the last year Fun Factory has become one of the industry leaders in Minimum Advertised Price Policy enforcement. Today, it is virtually impossible to find Fun Factory bestsellers discounted anywhere on U.S. or Canadian websites. If and when our products are found anywhere under MAP, we usually manage to bring them back to MSRP within 48 hours max. This is our commitment.

In the last few months, other high-end toy manufacturers have reached out to us and asked to take a look at our new MAP policy documents as well as our new 2013 Retail Sales Agreements. Entrenue also reported that manufacturers asked them how Fun Factory achieved the results it did enforcing MAP and bringing all its products up to MSRP across all retail channels in just a few months. Fun Factory is happy to support other manufacturers wishing to control their own pricing and brand image. Fun Factory also wants to thank the entire Entrenue team for their support and efficiency in helping us enforce our MAP policy.

In the last 18 months, since I’ve taken office at Fun Factory USA, we’ve experienced a more rapid growth in North America as a brand. Many smaller online retailers have gained interest in carrying Fun Factory and have picked up the line. These retailers, many of them on the Amazon platform, found that discounting our products and undercutting well-established retail giants was their only way to gain market shares. The result was that by winter of 2012, many Fun Factory products were priced below MAP online.

Our reaction to this was simple. We gave our retail customers a choice to either abide by MAP and sign a new Retail Sales Agreement or discontinue their relationship with us as a re-seller.

How did you do it and how long did it take?

It took us only a few months to clean up the marketplace entirely such that all Fun Factory items were back at MAP online. In the process, we were obliged to cut a number of retailers off in December 2012 and January of 2013. These retailers were typically unable or unwilling to insure that our products would be advertised at minimum suggested retail price on their platforms.

At this stage, we have locked and limited the number of Amazon dealers athorized to carry our line and we have new retail customers fill out an elaborate application with strict conditions. Every week, we have to turn down requests from new retailers wishing to pick up our line because we do not feel it would be safe for our MAP.

Why is MAP important to you?

MAP for us is a way of preserving the integrity of Fun Factory, ensuring its longevity and building its credibility. Additionally, MAP is our way of offering retail partners a chance to compete in a fair environment. We do not want to allow our retail channels to engage in destructive price wars to the bottom against each other. These price wars ultimately hurt everyone’s margins and put companies out of business.

We believe no retailer can properly promote Fun Factory if they are making small mark-ups on our products. We choose to partner with retailers whose pricing strategy rests on a high mark-up model. At this stage we cannot sell our line to retailers seeking to penetrate the market by pricing our products below MSRP. Retail partners who are compatible with our business model and brand standards typically chose to grow and compete by focusing on expanding their presence in new markets (opening new stores) or by investing in building educational content and running aggressive marketing and PR campaigns. These retailers are typically selective with regards to what products they re-sell because they invest marketing money in each line of product they carry and pick products made out of the best materials, designed in the most innovative way using superior technology. These retailers also typically think of their sales associates as educators, not just sales clerks. Lastly, said retailers always spend budget on creating a great purchasing experience in-store and online, using our signage and trademarks (logo, POS etc.) in compliance with Fun Factory corporate visual identity guidelines.

What do you tell people who accuse you of price fixing?

I tell them we are channel branding, not price fixing!

There is nothing illegal about having a Minimum Advertised Price policy in North America. All this policy stipulates is that as the manufacturer, we reserve the right to cease shipping products to retailers advertising our products below MSRP. In short, we chose to protect a few select retail partners whose business strategy rests on making enough money to build their own brand as a retailer and educational platform.

Sexual wellness and high-end pleasure products are still relatively new to our society. In order to help legitimize the need for these products in the market, build a respectable image for the novelty industry and promote sexual freedom and equality in our world, Fun Factory chooses to sell its products only through sex-positive channels that truly invest in educating the public about sexual wellness and high-end sexual technologies. MAP is not price fixing it is part of our sustainable approach to business.

How has your business changed since the Fun Factory MAP “crusade”?

Because we let go of some retailers who could not abide by MAP, we lost the revenue that used to come from these retail accounts. However, overall, we are experiencing growth as a result of going on this MAP “crusade!” The retail partners who are still with us benefit greatly from this operation. Any business we lost by cutting off certain retail outlets simply transferred over to our current retail partners. We believe our image is stronger and products more desirable now that they are only found on the best retail platforms.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

Why Inclusivity in the Pleasure Industry Is More Important Than Ever

2025 has kicked off with a series of unsettling events. Tension and anxiety are high across North America as the unknown impact of tariffs, climate change and attacks on human rights loom ominously. In times of unrest, seeking pleasure is not frivolity but necessity.

Sarah Tomchesson ·
opinion

Tips for Keeping the Adult Retail Trade Show Momentum Going

Trade shows are a whirlwind of energy, excitement and opportunities. You spend days on a vibrant, buzzing show floor, making valuable connections and discovering innovative and exciting new products. You spend time, energy and money to be a part of this fabulous circus.

Rin Musick ·
opinion

2025's Top Tech Trends That Adult Retailers Should Know About

I just got back from the National Retail Federation’s Annual Convention & Expo, also known as “Retail’s Big Show,” where I walked the floor, sat in on key panels, talked with industry experts and influencers, and did my best to sift through the b.s. so I could report back to you all on the things you need to care about.

Sean Quinn ·
opinion

Understanding the Importance of Graphic Design in Sexual Wellness Social Media Marketing

In the world of social media, graphic design is more than just making things look visually appealing — it’s a vital tool in shaping and maintaining a brand’s identity. Your social media is your storefront, so aesthetics mean everything.

Hannah McManus ·
opinion

How Adult Retail Is Shaping Sexual Health One Customer at a Time

Remember back in health class, when they taught us about boundaries, consent and how many nerve endings are in the clitoris? Of course you don’t, because it didn’t happen. In fact, sex education is still severely lacking in much of the U.S.

Kimberly Scott Faubel ·
trends

Meet the Up-and-Coming Pleasure Brands of 2025

Over the past year, the pleasure industry has witnessed the emergence of new brands across various adult retail categories — brands that are now entering 2025 with ambitious goals for success and growth in their sophomore year.

Ariana Rodriguez ·
profile

WIA Profile: Nefertiti Mitchell

Local retailers are the backbone of the pleasure industry. Driven by passionate business owners who are deeply dedicated to sexual wellness, brick-and-mortar stores serve as safe spaces that uplift and delight customers — while greasing the wheels of commerce for manufacturers and distributors.

Women In Adult ·
profile

Industry Vet Mike Savage Discusses Comeback, Goals With Full Circle Distribution

"We never know where life’s going to take us,” says Mike Savage. He should know. The pleasure biz veteran, who describes himself as “a poor Irish kid from Philly,” first made his name in the adult retail biz over the course of a nearly 40-year career.

Ariana Rodriguez ·
profile

Sensually Yours Founder Shellee Rose on Boosting Sex Positivity in Hawaii

Honolulu pleasure store Sensually Yours has served Hawaii for 40 years, establishing itself as a top destination for adult products. Founder and President Shellee Rose says her most important strategy for achieving four decades of success has been prioritizing customers.

Quinton Bellamie ·
profile

Gregory Dorcel on Building Upon His Brand's Signature Legacy

“Whether reflected in the storyline or the cast or even the locations, the entertainment we deliver is based on fantasy,” he elaborates. “Our business is not, and never has been, reality. People who are buying our content aren’t expecting reality, or direct contact with stars like you can have with OnlyFans,” he says.

Jeff Dana ·
Show More