With the dot com boom, the e-commerce industry took off. Anyone and everyone became an online retailer, which meant a heavily saturated and competitive marketplace, where discounting became the norm. Price was the only way to compete.
Because of this shift in the retail landscape, the need for brands to have a minimum advertised price (MAP) policy emerged. A properly enforced MAP policy protects brand equity so brands stay competitive and highly valued in the marketplace, while preserving seller profit margins.
We've put together a helpful infographic to explain the basics of what a MAP Policy is and how MAP Pricing violations can appear.
The Minimum Advertised Price Policy
The facts to help manufactures maintain their brand equity and protect their sellers' profit margins.
Minimum Advertised Price (MAP): The lowest price at which a product can be publicly displayed, without restricting the actual sales price.
MAP Policy: An offer unilaterally enacted by a manufacturer to ensure their seller network does not advertise their products below the minimum advertised price.
Did You Know? In 2007, the Supreme Court made a decision to provide greater legal protection to minimum pricing policies. Learn more about MAP Policy Legality here.
In the growing online world, MAP policies matter more than ever.
They help preserve e-commerce as a viable business model with profitable margins.
Common MAP pricing policy violations appear as:
But violations are easy to miss because of:
Some of the biggest MAP violators are:
It's important to have a MAP policy and enforcement process in place:
For manufacturers and brands:
Did you know? To protect the reputation and legacy of its Ray-Ban sunglasses, parent company Luxottica: