What Is MAP Pricing?

MAP stands for Minimum Advertised Price. It is the lowest price that a brand allows its authorized resellers to advertise its products for sale. MAP is often used as a pricing policy by brands to maintain a certain level of pricing stability for their goods.

By setting a minimum advertised price, manufacturers can ensure that their products are not sold at prices that are too low, which can erode the perceived value of the product and damage the brand’s image.

Regulation of the cost of goods by its manufacturer is an expedient and effective measure.

Map prices for retailers

Internet sales are highly competitive. Other sellers automatically tempt any seller who sets a price to lower it by some amount. As a result, there is often a chain reaction of price reductions, usually contrary to the manufacturer’s interests. Retailers who lose out on unprofitable prices will then be forced to reduce the number of products they sell.

Thus, a rapid drop in value is detrimental to both the product manufacturer and its retailers. Therefore, the best way out for the manufacturer is to set a Minimum Advertised Price mutually benefiting all parties to the trade transaction. 

How is MAP policy monitoring different from regular price-fixing?

Traditional value fixing is an unspoken contract between sellers created to reduce competition. In contrast, MAP pricing is concluded vertically rather than horizontally. In this case, the producer initiates the pricing policy rather than the retailers competing with each other.  

Also, fixing the price does not imply the conclusion of any contract between the participants. All of the above refers to the fundamental differences between the set price and trivial collusion between sellers. Therefore, the creation of MAP price monitoring does not affect competition in any way. In addition, the recommended retail price provides a benefit to both the manufacturer and the retailer.

What do we offer to improve MAP monitoring?

The primary function of MAP is to protect the brand and margins and prevent product depreciation due to price wars. Producers interested in setting a reasonable price must also properly organize MAP policy monitoring. The list of tasks arising for them will include:

1. Selection of a single price for specific products for all points of sale.
2. Constant monitoring of market trends.
3. Detection of price policy violations by retailers.
4. Work with them to eliminate MAP deviations.

Such control operations will be difficult to perform if your organization sells thousands of items and you have hundreds of retailers. In this case, you can use an automated MAP monitoring solution from Pricer24. With Pricer24, you will be able to:

• find out the price discrepancy for each retailer;
• quickly find goods with deviations from MAP;
• easily find the retailer who changed the price first.

MAP Monitoring is easy using our software. Leave all routine operations to Pricer24!