Photo by Artem Beliaikin from Pexels
Preparing a retail pricing strategy can feel like navigating a minefield. Beneath the tense, competitive surface lie the real threats to your success: unchecked resellers. They offer similar products at below-list prices, thereby sabotaging your brand’s value and reputation. It’s a dark game they play. But luckily, you have a trick up your sleeve: MAP pricing.
A minimum advertised price (MAP) policy is an agreement between suppliers and retailers on the lowest rate that they can promote certain items. If sellers are found to be dipping below this agreed-upon threshold, they can be penalized accordingly. And as for those unmonitored resellers, this is a means of keeping their nefarious activity in check.
If you can successfully implement a MAP pricing policy and curb those violations, the benefits you stand to gain are tremendous. From competitive advantage to product margins to customer relationships, h… Read More