- Your Guide To Understanding What is Map Pricing
- The Benefits Of Having A MAP Policy
- Let us Take Care of Your MAP Monitoring & Enforcement
In this day and age, competition is stiff in almost every industry. While it is healthy as it breeds innovation and seeks to protect the consumer, the price steadily bobs down, proving it difficult for companies and retailers to sell the products.
However, when it comes to the price of the product, there is the issue of what is MAP pricing — the Minimum Advertised Price. Manufacturers often set and require retailers to adhere to this pricing level when advertising and selling their products.
The team from Brand Alignment, a leading service provider in the industry, provides vital information on the subject matter. In this article, we will be breaking down what MAP pricing (see the Brand Alignment MAP Pricing) is, how it benefits or hinders, who makes use of it, and its importance to retailers.
What is MAP Pricing?
What is MAP pricing? It is the lowest price that a retailer advertises a product for sale in its most basic form. The price at which a product is advertised doesn’t necessarily relate to the final sale price.
Any reputable company looking to sell its products and make a profit has a MAP policy. Manufacturers conduct considerable research to identify and create the ideal MAP guidelines for their products. Companies keep an eye on the market for violators of their MAP policies and pricing models to protect their interests, branding, and final price.
The Benefits Of Having A MAP Policy
The current market has taught us the importance of branding and messaging. Your brand identity determines your share of the market, level of exclusivity, and the profit earned. Companies building their brand or already knowing its value will have a MAP pricing in place.
Here are some of the benefits of MAP:
- Protection of the market’s perception. A company has considerable control over how the market perceives the brand.
- It doesn’t affect sales. In the end, MAP solely affects the advertised price. Retailers have the leeway of selling the product at whatever price they choose.
- Standardization. Consumers shopping for the product statewide or nationwide can ‘expect’ a similar price.
- Protect profit margins. While some retailers may argue about the issue of competition, they cannot complain of the minimum profits guaranteed thanks to the use of MAP Pricing.
The Cons Of Having A MAP Policy
Generally, the term ‘MAP policy’ is used to describe the guidelines set by manufacturers to protect the resale pricing of their products. However, it’s essential to understand what is MAP pricing: it refers to the minimum advertised price that retailers can display.
In addition to MAP, there are other types of reseller policies. For instance, if you’re a manufacturer concerned about both the advertised pricing and the actual resale prices from your retail partners, you may want to consider the MRP, or the minimum resale price policy, which regulates both advertised and sale prices of your products.
Another option is the eMAP, or electronic minimum advertised price policy, which is a specific type of MAP policy that comprehensively protects the advertised prices of your merchandise. The eMAP goes further by limiting how retailers can promote your products in text messages and emails sent to prospective customers.
The Legality Of It
If you are a manufacturer or retailer operating in the US, it’s crucial to understand what is MAP pricing: the minimum advertised price that is legal and binding. However, you may encounter some minor variations depending on the state in which you operate. To be recognized as an authorized seller of a company’s products, you’ll be required to sign a contract that affirms this arrangement.
In contrast, the use of MAP pricing policies is not applicable in Europe, where retailers have the freedom to set the prices of the products they sell without the constraints of MAP.
You might also want to read What is Price Matching Software: Complete success guide
MSRP, A Closely Related Term
While we are on the matter of retail price, we should mention another closely related term, MSRP. The abbreviation stands for Manufacturer’s Suggested Retail Price. The MSRP represents the price that the manufacturer believes the good/ product should be sold.
The difference is in the interpretation. For MAP, the manufacturer addresses the issue of advertising/ marketing of the product while MSRP guides retailers on the price of the product.
In addition, the MSRP is shielded by the MAP pricing plan. For a company looking to sell a premium product, significant discounts hurt the branding and ultimate message to the consumer. The consumer opines that the product doesn’t match the MSRP.
You might also want to read Understanding MAP Price, MSRP, and UPP in Retail Pricing
Conclusion
Are you looking to enjoy increased sales and reduce diverted revenue from your brand? Call upon the experts at Brand Alignment. As a premier service provider in the industry, we leverage modern development techniques and approaches to optimize your online sales and protect your brand from any violations, particularly when it comes to what is MAP pricing.
With a background in data, e-commerce, and technology, our experienced team is perfectly suited to meet your needs. We provide our clients with unique, tailor-made solutions that are guaranteed to address their specific requirements.
Contact us, get in touch with us today and get a free quote or reach out to us on Linkedin.
Optimize your MAP Pricing strategy for maximum impact
Looking to keep your pricing consistent across marketplaces and drive brand success? Our MAP Pricing services ensure compliance, safeguard your brand’s value, and empower you to maintain competitive pricing strategies. Get in touch to discover how we can tailor a MAP solution to meet your unique needs.
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