Minimum advertised pricing (MAP) enforcement across highly competitive marketplaces such as Walmart and Amazon is difficult.
We could spend a great deal of time discussing what you must do now, but you also need a plan for preventing MAP infractions in the future. So let's plunge in.
What is an advertised minimum price (MAP)?
A MAP pricing is the minimal price below which resellers agree not to advertise. For instance, if a corporation sets a minimum advertised price (MAP) of $50 for its best-selling item, all resellers, including brick-and-mortar stores and Amazon resellers, are required to offer this product at $50 or more.
What is the purpose of Minimum Advertised Price (MAP) agreements?
MAP contracts exist to:
· Encourage competitiveness across all distribution channels
· Keep brand identity and value intact
· Permit smaller sellers to compete with larger ones.
· Prevent underpricing
· Guard seller margins
How to Stop People Who Already Break the MAP
When a MAP agreement is broken on Amazon, it can hurt brands because Amazon doesn't really have much of a say in the agreements between sellers about prices.
If a manufacturer finds out that an Amazon reseller broke their MAP agreement, they can talk to the reseller directly.
To deal with a MAP violator (one product at a time), a maker should:
· Find all the sellers who are breaking the MAP rules.
· Send all resellers a message saying that MAP will be strictly enforced.
· Remind resellers that they must follow MAP or they will be banned from selling any products.
· Give the person who broke the rule one warning before banning them.
· Continue to monitor MAP pricing across all channels
In conclusion
Even though all of the above tips are important, there's one you should really remember: Be consistent.
Follow the minimum advertised price enforcement rules, no matter who breaks them or how bad they are. If enforcement processes are consistent, at least you'll know exactly what to do in the moment, and you can use that information to make your MAP enforcement plan even stronger in the future.
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