Effective MAP enforcement, assuming your company sells through retail partners and has a Minimum Advertised Price (MAP) policy in place, is an extremely important function for your business — both to protect your company’s important reseller relationships and also to preserve and help grow your brand value.
If one of your reputable resellers spots another retailer openly violating your pricing policy — whether your company has a MAP pricing policy or another type of reseller policy — you have a serious problem. Actually, you have three serious problems.
A highly experienced antitrust lawyer we work with at TrackStreet once told us, “Almost every manufacturer that comes to our firm looking for help drafting reseller pricing guidelines says they need a ‘MAP policy.’ But in most cases, what they need is a different policy altogether.”
Topics: Minimum Advertised Price Policy
You’ve got a MAP violator. Someone on your team just caught a retailer advertising one of your products online at far below the minimum-approved price stated in your Minimum Advertised Price (MAP) policy.
Now what? How should you go after that MAP violator?
Unethical and unprofessional practices by resellers can cause all sorts of problems for the brand owners whose products they sell — up to and including real damage to the brand’s value in the marketplace.
Topics: Resale Price
You’ve drafted and published a Minimum Advertised Price (MAP) policy that explains clearly and concisely how you want your resellers to advertise your products, and what the consequences will be if they violate the policy. If you were following best practices, you’ve even publicized your MAP policy across your industry.
Topics: MAP Enforcement
When manufacturers and brands start thinking about developing reseller pricing policies, they understandably focus on the business details. Which specific guidelines to draft into the policy? Where to set their minimum price levels? How aggressively to go after violators?
Topics: Pricing Policy
Whether your company already sells its products through a network of online resellers, or you’re just in the planning stages of building an online resale channel, it’s worth stepping back and thinking through the many common missteps manufacturers and brands make when they start growing a resale channel on the Internet.
Topics: Brand Protection
If you’re wondering whether your brand should invest in implementing a policy that establishes minimum pricing levels for your resellers, the answer is almost certainly yes. Such policies — assuming they are properly drafted and effectively and consistently enforced — provide manufacturers and brands with tremendous advantages. They protect the interests of your authorized resellers, preserve your margins, and help guard against the erosion of your brand’s reputation that could come from a public price war of your products.