Creating and enforcing a Minimum Advertising Price (MAP) Policy helps protect brand image and ensure that authorized retailers are able to compete fairly. Here are 5 steps to successfully implement a new MAP policy:
- Determine your threshold – What is the lowest price that you would like your products to be advertised at? This might be a percentage under your MSRP or it could vary among your products. This is NOT the lowest price that your product can be sold at. This still allows retailers to offer discounts once products are “in the cart
- Develop your policy – Draft a MAP policy that outlines your new policy and the actions you will take if authorized retailers violate it. Make your expectations clear. To play it safe, have a lawyer review your policy to ensure that is compliant with state and federal law.
- Distribute your policy – Send your new policy and MAP pricing to your authorized sellers.
- Monitor your pricing – Identify which sellers uphold your MAP policy and which sellers drop their prices first. Pro tip: Perispect can help with price monitoring and case management.
- Notify violators – Let sellers know that you’re aware of the price violation and follow any actions outlined in your policy. Keep track of violations so you can identify repeat violators.