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Everything You Need to Know about MAP Policies

MAP stands for minimum advertised price, and a map policy is an informal contract between manufacturers and resellers, through which resellers are committing to abiding by the manufacturers’ recommended advertised price. If you are unfamiliar with this concept, you don’t understand the purpose of this policy, how it works and how it can be monitored, don’t worry, as we have the answers to all of your questions.

Why you need a MAP policy

There are many reasons why a MAP program is essential for any company. For starters, as you sell more products, you should gain more revenue. However, this won’t be the case if your resellers keep discounting your products. Still, it is important to understand that a reseller can charge whatever they want in their store. Nonetheless, if they are to abide by a MAP code, they can’t advertise your products below your recommended price, so they can’t use discounts as a way to lure in new customers. Not only will your revenue suffer from low prices, but your brand image can also be affected. Having your products sold at highly different prices will make your brand seem less trustworthy. Moreover, constant discounts can make customers consider your products as cheap or of low quality.

Is the policy enough to protect your brand

As we said, this policy is an informal contract, meaning that you don’t actually have the legal backup to force your resellers to abide by your price recommendations. Moreover, you don’t have the power to ask for legal repercussions if your resellers violate the policy. The only thing you can do in case of a violation is to cease all collaborations with said reseller. But how do you discover a violation? Well, aside from a policy, you also need a MAP monitoring system.

What is the best way to monitor your MAP policy?

First of all, you have to consider what type of resellers you are dealing with. If you have offline resellers, meaning that your products are only sold in physical stores, there are no great ways of monitoring them, except by paying your resellers some unexpected visits from time to time. However, the more resellers you have, the harder this process becomes. Nonetheless, most businesses nowadays, advertise online, even businesses that only sell in physical stores. So, what you can do is to monitor the online accounts of your resellers. Even so, the process can be very demanding if you have a lot distributors. This brings us to the ideal solution: a MAP monitoring software solution. There are many such solutions on the market today, Trade Vitality being the best one of them. This program automatically monitors all your resellers and distributors, and notifies you in case of a violation. It is that simple. You don’t have to hire anyone to take care of this task, as you can receive instant notifications each time there is an online violation of your policy.

Categories: Business Tips

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