A Minimum Advertised Price – or MAP – is set by a manufacturer and is the lowest price that resellers and distributors can sell a product. The price limit is an attempt to provide fair competition.
Although suppliers and manufacturers may enforce a policy in order to protect their brand and business, MAP violators still exist. Because of this, it’s important for a business to implement MAP monitoring over online retailers to build fair competition, brand identity, maintain margins, and prevent lower prices.
Effective MAP policies allow manufacturers greater control of their brand and who is authorized to sell their products. Policies typically have an enforcement system that includes warning notifications, that can result in the removal of authorized sellers who don’t comply.
MAP applies to advertised pricing only; retailers can resell a product at a lower price if they are not advertising it at a lower price. The price limit helps even the playing field for businesses regardless of size. Sellers are made to compete with each other based on excellent service, fast shipping, and various factors other than price.
Suppliers with policies can also offer exclusive products, cross-branding marketing support, sales bonuses, and more to entice resellers. In turn, an efficient MAP policy can build stronger relationships between manufacturers and sellers.