How To Implement MAP Pricing And Enforce It Effectively?

MAP breaches can result in significant consequences for brands, including as customer loss, reputational harm, breakdown of confidence amongst business partners, and financial losses. These resellers limit a brand's sales potential and eat into its margins by selling at prices cheaper than the stipulated map policy. That is why brand owners must understand how to implement MAP pricing.

What exactly is the Minimum Advertised Price (MAP)?

The MAP, or Minimum Advertised Price, is a predetermined minimum price for a product below which resellers agree not to promote or sell. MAP pricing strategies are intended to benefit both manufacturers and retailers since they protect retailers' margins and avoid brand depreciation.

 

How Can Brands Effectively Enforce Minimum Advertised Price?

Manually enforcing and monitoring MAP compliance is a near-impossible task. To guarantee total MAP compliance, brands require technology to monitor hundreds of thousands of their items offered online and to prevent sellers from breaking their MAP agreements through timely email notifications.

How to enforce the MAP?

According to research, MAP pricing enforcement enhances compliance. The options for enforcing MAP price are shown below.

Create guidelines for your sales and distribution network.

Setting explicit compliance criteria for your distributors and retailers makes MAP pricing supervision and enforcement much easier.

Monitoring of MAP Violations

Technology-based solutions relieve you of MAP enforcement and are far more efficient than single-case approaches.

Letter of cease and desist

Cease-and-desist letters are an effective way to convey a stern message to vendors who violate MAP regulations in order to cease the violation.

Conclusion

MAP pricing is more crucial than ever in the current online retail sector, since online customers are continuously looking for the best deal. However, a successful MAP policy can only serve its function if you have a MAP price monitoring and compliance mechanism in place.

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