One criticism we at TrackStreet often hear about Amazon from manufacturers and brands is that the marketplace doesn’t always intervene to remove reseller listings that violate a manufacturer’s minimum advertised price (MAP) policy.
When it comes to drafting and enforcing a MAP policy, there are many misconceptions and a lot of just-plain-bad information out there about what’s legal and what isn’t. One common misconception is that it is always illegal, no matter the reason, to grant a reseller’s request for an exception to your policy’s rules. The reality: It isn’t.
There is a common and totally understandable misconception about how far a brand’s minimum advertised price (MAP) policy can extend into the sales cycle. The good news is you might have more influence over your resellers’ online pricing than you thought.
When they set out to develop a MAP or other resale pricing policy, most manufacturers are thinking about what the policy will mean in terms of their retail partners and how it will help them control their products’ retail prices.
If you Google “MAP policy template” right now, you’ll find countless real-world minimum advertised price policies that manufacturers and brands have published for their resale partners to see. You’ll also find plenty of examples of ready-made language to help your draft your own MAP policy.
So, you want to roll out a Minimum Advertised Price (MAP) program, but you have no idea where to start.
If you’ve ever heard a colleague refer to his company’s MRP, or describe his reseller policy as a UPP, or an RPM, or an eMAP—and wondered what the heck he was talking about—this post is for you.
The good news is that as a manufacturer or brand owner, your company is perfectly within your legal rights to establish guidelines regarding the prices you’re willing to allow retail partners to advertise and even sell your products.
When a manufacturer drafts its MAP policy, one common fear is that the document will come across as too harsh, and that it will either scare off or turn off the company’s resale partners. But when they try to avoid this concern, many manufacturers overcorrect—and make an even bigger MAP policy mistake.