Today’s shoppers are a well-informed lot and know which side of their bread is buttered. They indulge in both online and offline shopping and know what is right for them. They conduct thorough research and also compare the prices extensively before making their purchase.
To protect small and businesses, there is a Minimum advertised pricing policy or MAP policy. This is an agreement between retailers and suppliers, which specifies the lowest price that is permitted to be advertised on certain particular items.
Why is MAP policy critical?
The MAP policy is important as consumers conduct online comparisons before buying any product. It is also very critical for manufacturers who offer products to third parties for online reselling. But this pricing policy relates only to the price that is advertised.
This implies that you get restricted to the price that you can advertise on products that are MAP protected. Retailers can incur penalties and fines from suppliers if they violate the MAP contracts. Additionally, the manufacturers have the right to remove these products that violate the price policy and can even restrict the selling of this product, again.
You can protect your brand and maintain your profit margins, by MAP monitoring. Monitoring can help you detect any violations and act, if necessary. The manufacturers can use MAP monitoring as a yardstick to check the prices of products across various retailers.
The retailers can also use this as a yardstick to check if their competitors are violating the policy and what they are charging for similar products. This also ensures that value of the products is not lowered by offering unseemly discounts. Thus, MAP monitoring prevents the products from getting under-valued.
The fact is that it is very tricky for manufacturers and retailers to monitor the pricing rules, without the necessary tools. However, today there are very effective monitoring tools available to check and assess compliance with pricing policies and thus maintain fair competition.