The minimum advertised price (MAP) is the lowest price a retailer can announce products to customers. For example, if a clothing supplier sets a MAP of $45 for black jeans, the online retailer must advertise it at $45 or more, but never less than that value. Due to its efficiency, and strictness, one of the biggest questions brand owners face is: “Should all of my products have a MAP policy?” 

The truth is that a company can choose to have MAP policies on the products they want. But the ideal way to do it is by first analyzing your products. Think wisely about why you want that product to have a MAP policy. The product selection must be supported by facts and based on value. The main objective of the MAP policy is to protect and increase your brand value. The same goes for profit margins. It is up to the brand owner to decide whether to apply it. 

If you are still unsure about which products to pick for the MAP policy, try using the Pareto principle (commonly known as the 80/20 rule). The rule states that 80% of outcomes come from 20% of causes. The great thing about it is that it can be applied in every field. In the case of eCommerce and MAP will be the following. Which 20% of your products make up 80% of your revenue? PriceTweakers help you with that because, in our report system, you will see the status of your products (best and worst selling). The MAP policy must focus on those products (part of the 20%). Now, we proceed to explain the advantages of implementing the MAP policy on those products.    

1- Reduce time and friction between you and reseller 

Having your top-selling products with MAP saves time for you and your sellers and reduces the arguments with them. Instead of you and your dealer having to review large MAP catalogs because all of your products have the MAP policy, they only have to review a few. That allows you to save time because you only have to check your vital products, and you can use that time to focus on other tasks. Sellers must comply with MAP with a few products, making their job easier. Also, brand owners and resellers will have less arguing about MAP violations because they do not have to be on top of many products to prevent MAP infringements. 

2- Increase brand value and profits 

Your brand value will increase when your products have steady prices across all platforms, online and offline. Sellers will know that they are getting your products from authorized resellers. Additionally, your business will increase its profits because your dealers will not be underselling your products, thanks to the MAP policy. If you have a luxury brand, you must aim to have consistent prices across all platforms.  

Conclusion 

Having a MAP policy is essential if you want to protect your brand and prices. But not all of your products must have this policy. Focus on the most important or, in this case, the top-selling ones. PriceTweakers helps you establish the MAP policy on your products and know your best-selling items. You can track your products and receive notifications when a seller commits a violation. Also, from our MAP action management tab, you can track the status of the breach. From the first contact with the distributor or vendor to the case being resolved.   

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