There are many queries about map policies, especially as they keep popping everywhere. What are map policies, basically, and how do you monitor yours? It can be very exhausting to find a needle in a haystack when it comes to this, and in what way can the map enforcement process be automated?
To start within deciphering the fundamentals of the map policy world, the questions about “what is a map policy?”, and how did they come about will be answered. It is also worth the while to learn why every brand needs to have a map policy.
As you gain know-how about what map policies and map pricing policies are, you will need to take a closer look at the details. Primarily, these are the rhyme and reason for each email that you send across, every deadline you impose, and whatever consequences that you take the risk for being.
In this article, you will be guided about the map enforcement process that will curtail the number of your violators, along with leading your new sellers into your new policy, get in touch with the identified violators, establishing points of references, and consistently bringing your network up to date.
What You Should Know About MAP Policies
MAP stands for “minimum advertised price”. It is the lowest price that can be designated for a product placed on sale, and that which is presented publicly. Map policies are generally enacted by a particular brand to guarantee that its network of sellers does not market its products at a price that is below a certain benchmark. You must be wary because substantial sales and discounts at the level of retailers can undermine your control pertaining to the amount of cash that you obtain from consumers for your merchandise.
You can have an edge on the competition through map policies because they give you the capability to put a limit on the price online and offline resellers place on your goods. Retailers may be able to charge a price that they want to in-store, but they should not be allowed to entice new customers by promoting your products at a lower price than what is indicated by the MAP.
For a growing business, this is good news. However, it can be tricky to keep track of the marketed price of every retailer. By yourself, you can put in the leg work, but it can cost your business a huge amount of time and financial resources. A smart option is to work with a third-party for your map monitoring endeavors. It is more cost and method-effective in terms of ensuring your map policy compliance.
Where Did MAP Policies Come From?
Online selling was not so easy ten years ago. During those years, the world wide web was a space that favored the young, technical savvy and adaptable types. If you were into a new retail business or owned a brick and mortar shop, you had to deal with a restrictive range of services if you want to take your business online. It is a deed that you had to do all by yourself.
But technology, amazing as it is, has rapidly grown and developed. So fast in fact, and now there are platforms such as eBay, Shopify, Amazon and Magento that makes selling online very easy. Barriers to the entry of your products have been done away with, and risks are minimized. Other than these platforms, there came the outputs of niche-specific and peripheral services that especially cater to internet resellers. If you take time to learn the ropes of online selling, you’ll realize that you can work with it, instead of fighting it. To this point, there is an astounding amount of people selling stuff online.
The competition in online selling has become tougher, too, and merchants who want to gain an advantage over it have resorted to giving discounts, promotions and lowering their prices. Now, selling on the internet has become a game of how low (a price) can a merchant go to be able to gain more customers.
It is this trend that resulted to brands and distributors mistrusting online retailers because their products are sold at lower prices. Then again, there’s no getting away with it because of product price comparison and intelligent software. The incredible discounts are bound to spread throughout a brand’s selling network quickly. The race to go lower at the bottom and the practices of misguided online sellers ultimately result in the eroding of a brand’s image. There no longer are expectations of longevity.
To curtail this trend that leads to a downward spiral map policies have been imposed as a response to control the easy online selling practice and placing discounts.
Be Aware Of These MAP Pricing Facts
You might initially think that antitrust laws mostly comprise map policies. Then again, these agreements are constantly upheld by courts in part, due to the fact that it is the prerogative of the retailers to charge for their in-store products. Aside from this, manufacturers sometimes partly fund MAP agreements because it is these people who compensate retailers for their advertising restrictions.
E-commerce has massively expanded that it has become tricky to define what “advertised price” is. An online store may contain a listing that falls within MAP, however, price cuts for per-transaction as a shopping perk might be too vague to establish. The benefits of such can be maximized by having discount codes and online coupons be applied with distinct map policies.
Both the parties of manufacturers and retailers should adhere to their ends on map policies, and in these case, MAP policy monitoring (see the best map monitoring software) is necessary. MAP enforcement will sustain your business because it can be hard to stop a new reseller from violating a contract due to deliberate intent or confusion about a manufacturer’s MAP policy.
Reasons Why A Brand Needs A MAP Policy
A brand and a MAP policy go together like bread and butter. They have to constantly keep to each other to obtain the best results. Essentially, your online DNA should contain these crucial elements. Incorporating map policies into your brand will encourage retailers to better promote your goods, and impel customers to patronize your brand name. Think of it as your primary line of defense to protect your brand and grow your profit.
As a brand manufacturer, always remember that your sellers are also your customers, and by being proactive in introducing and implementing your MAP policy, you are signifying your long-term purpose of committing and investing to your seller network. The customers, being the blood of your business have to be prioritized, or else you will encounter major glitches along the road. The effort is necessary in strengthening this partnership. By saying that you have your sellers always in mind, you are able to instill in them the confidence and assurance that their investment to your brand is the right choice. Consequently, they will promote and sell your products in a professional and competent manner. Yes, you rub their back, and they rub yours.
Consider that it took a hefty amount of your time, money and effort to build your product and brand name, but it could only take a few sellers to destroy it. By imposing map policies, you are compelling your sellers to stick to the best practices and prevent them from eroding the position of your brand in the market.