Under a map minimum advertised price agreement, retailers are notified about the lowest selling price they can offer for the product, and as a consequence, they frequently set a minimum selling price for that product across their promotional schedule. This also helps consumers recognize the true value of commodities and makes it easier for customers to identify counterfeit products. That is why firms do not allow merchants to advertise their products at prices lower than a specific price range. There are various compelling reasons for organizations to implement a MAP policy throughout their sales channels, including the following:
Importance of MAP Policies for Your Brand
· Increasing the Benefit Margin - The approach of establishing a map minimum advertised price helps businesses maintain their profit margins by preventing selling their items at lower production and shipping costs.
· Aiding in Accurate Performance Analysis - When every retailer stays within the same price range rather than lowering one another, brands may have better knowledge of how their products are performing. Manufacturers may use this information to make better business decisions, enabling them to establish more strategic partnerships and focus on the production of high-demand goods.
· Makes Cross-Selling Easier - Most brands sell a variety of items. Customers who are drawn to one of the goods are more likely to notice other products from the same brand. MAP pricing helps in the sale of other items by attracting customers who intend to purchase products within a specific price range.
· Increase Authenticity – Another important factor in a brand's sustainability over time is its MAP policy, which promotes client trust in its products.
Last but Not Least, MAP Pricing policies are a great tool for helping you control and maintain your brand image, which is equally advantageous for authorized retailers who decide to sell products at a fair price to the general public.