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Online marketplaces and site-to-site price comparisons have made e-commerce more competitive than ever. 

How can you maintain authenticity among vendors while maintaining the integrity of your brand? 

 Real estate prices and approved sales standards are important for improving the game, but they can be difficult to implement when they involve so many fine nuances. 

What is the MAP Pricing Policy?

MAP stands for “minimum advertising cost”. It is a policy of a brand or manufacturer that forces its sellers not to advertise products under the door. 

For example, if a jeans manufacturer sets a MAP of $48.99, no physical store or online store can advertise a price below that mark. 

Technically, distributors can sell below cost, they cannot publicly advertise below the fixed value. For example, a seller who sells under MAP over the phone or behind a member-only website is still in compliance. 

 How is MAP different from Manufacturer’s Suggested Retail Price (MSRP)? MSRP is the manufacturer’s suggested retail price, while MAP is the lowest advertised price. Dealers don’t get to choose the MSRP (it’s the starting price), but the amount helps set prices among dealers. 

It is important to note that the MAP policy only applies to the United States and Canada. In most cases, MAP pricing is illegal in other countries such as the UK, where it is considered a form of price fixing. 

What are the benefits of the MAP pricing policy?

MAP policies are important because they protect multiple parties, including brands, vendors, and consumers. In fact, they benefit all businesses because they: 

What happens if a seller violates MAP rules?

MAPs are manufacturer policies, not contractual agreements with retailers, which means they are not covered by the law. In fact, manufacturers require distributors to sign MAP agreements in violation of US antitrust laws. That’s according to the Colgate decision, which said manufacturers can set price standards as long as retailers are free to follow them or they don’t interfere (when they do involved in the end of the brand partnership). 

Each manufacturer can set its own policy regarding MAP violators. Some companies may send a warning to the distributor, while others choose to terminate the relationship immediately. In turn, retailers must consider whether selling under MAP is worth the risk of not doing business with the brand in the future. It is in the interest of retailers who want to maintain strong relationships with manufacturers while adhering to MAP standards. 

Why would a distributor even want to sell below MAP or market value? 

How to set MAP price forecast?

Several MAP pricing policy templates can help you draft your own, but we recommend that you work with your legal and compliance team or e-commerce professional to plan your approach and come up with a plan that works for you. and your network of resellers. When creating your own MAP pricing plan, remember: 

You will also need to develop a strategy for dealing with unauthorized suppliers. Will they receive a warning? Should you send a text message? Or stop immediately? Be sure to mention that under the law, sellers are free to sell and advertise any price they want, but you can also cut links. 

Use ChannelAdvisor to set the right price 

Pricing your product is strong enough without worrying about the minimum number of ads and seller behavior. But it is very important in a world where channels and market competition are increasing. 

ChannelAdvisor experts can guide you through this process, acting as an extension of your team to design pricing strategies, implement automated payers, and have the most impact on your profit margin. ChannelAdvisor manages services that draw on years of e-commerce experience to implement the best repeat options to meet your goals and monitor performance as conditions change.

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