How Can Your Company Benefit From MAP Policy

1. How Can Your Company Benefit From MAP Policy? MAP pricing enforcement policies benefit all parties involved, including the brand owner, manufacturers, distributors and retailers. The advantages of implementing such a policy are clear. The benefits include the following: a. No more price wars In the fiercely competitive world of retail, matching your competitors for price is a must, if possible. This means that when one retailer offers a discount, it’s likely that their direct competitors will follow suit. They can also implement this through in-store price-matching schemes. Auto-repricing tools and Amazon repricer can automatically detect when a competitor has dropped their price below your own, automatically repricing your products within a set range. By agreeing upon a minimum advertised price at which a product can be sold, it sets a bottom limit to the price for all parties selling the item.

2. b. Avoid being a loss-leader As part of a price war, many retailers choose to sell some key items for either almost zero profit or as loss-leaders, making a small loss on each sale. They do this to drive customer traffic to their store and sites, and to capitalize on accessory products such as cables, that have higher profit margins. The danger of such deeply low pricing is that it will affect manufacturers’ brand value or market positioning. In addition, this can set expectations among distributor networks for lower prices across the board, as both retailers and customer are likely to notice substantial price rises when product prices return to normal level. c. Keep yourself competitive A MAP policy means can prevent suppliers from being outcompeted by their own partners. An enforced MAP policy means distributors and retailers can only offer a limited discount, meaning a supplier store or website can remain competitive. Conclusion Having a strong MAP policy allows you to easily terminate contracts with distributors who are not providing enough value to your company and endangering your brand value.