A MAP price is the minimum amount of the resellers agree and not to advertise below. A great example is a jewelry company that sells bracelets and has set a MAP price of $30.
This means that all of the resellers, including retail stores, are obligated to only advertise that product at no lower than $30. It prevents resellers from choosing to advertise brand products at a price where other resellers are unable to compete and make a profit. They would be in direct violation of the jewelry company’s MAP agreement.
Why Do They Exist?
MAP agreements exist in the majority to protect sellers. But here are some other bonuses to having MAP agreements
- Prevents underpricing-and you from losing cash
- Allows small sellers to compete with larger retailers
- Adheres to your brand identity and your brand value
- Protects those all-important seller margins
- Promotes healthy and fair competition across all possible distribution channels
Price is not the only concern when it comes to MAP agreements, although it is one of the main ones. Your brand identity is incredibly important. If you always sell the same items at the same price, that consistency will mean that they appear that valuable to shoppers.
If they can find your products at a lower price elsewhere, the value of your products drops. However, there are a lot of counterfeiters and MAP violators. This can be prevented when using the correct MAP enforcement software.
Most manufacturers will require re-sellers to abide by MAP regulations. But in the event that there is not a MAP agreement, manufacturers will have very little authority to enforce that minimum price.
How to Protect your Brand.
Once you have managed to put out all of the implications around any MAP violations, there are a few things that you can focus on that will help you mitigate the risk of future violations.
Review all of your contracts. Each of the retailers that are selling your product should have a MAP policy, and you should have access to it. Review all of your agreements and contracts and make sure that you are being protected.
Solidify distribution channels and spot check their prices. There may be some unauthorized reselling and if there are MAP violated issues, there may be a gap in your supply chain. Review and refine who you are selling to and ensure you know all the channels that your distributors are supplying to.
If you are selling on Amazon, you can register with the Amazon brand registry program. This will give you a more accurate brand representation and access to premium content.
Join Amazon’s brand registry. The Registry helps you protect your intellectual property and create an accurate and trusted experience for customers on Amazon.
The bottom line when it comes to MAP is that you need to remain informed, researching, and enforcing your MAP plan as you move forward as a business.