• May 3rd, 2018
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Why You Should Care About MAP Violations

Why You Should Care About MAP Violations

If you’re reading this you’ve probably worked hard to develop a reputable online brand. Your brand has perceived customer value and you may have spent countless hours on maintenance in order to ensure balanced growth. But if you aren’t supervising minimum advertised price (MAP) violations you are susceptible to losing massive revenue streams to unauthorized sellers, brand erosion, and perceived product value loss.

What is Minimum Advertised Price

Simply put, minimum advertised price or MAP is the lowest price a seller can advertise a good. However, minimum advertised pricing only relates to advertising and does not reflect the price at which a retailer can sell said item in their store or online shopping cart. MAP and is a form of manufacturer brand protection.

Imagine a product that has a manufacturer suggest retail price or MSRP of $500. But through an online reseller it is being advertised at $250. Your potential customers may start to think your prices are inflated. If, so they may refuse to pay MSRP for your product again. This perceived product value is representative of your brand’s strength. If your customers will no longer pay MSRP your brand will erode.

What is a MAP Violation

A map violation is a breach in the minimum advertised price agreement between the manufacturer and reseller. The above examples demonstrate a classic MAP violation When MAP agreements are breeched your brand will be left weakened or devastated. Breaches regularly occur, especially within Amazon. This is due to Amazon not interfering with their seller’s pricing policies and even Amazon breaking your policy directly. Unfortunately, pinpointing the sellers who are in violation and shutting them down is not an easy task. It is important that you use the correct tools to help save you time and make your case to Amazon or directly to your Sellers. It is imperative that you create MAP agreements to protect your brand.

How to Protect Your Brand

There are many eCommerce outlets that violate MAP agreements constantly. And of course, they will not take action because they do not want to disrupt their revenue streams. Monitoring your brand’s presence on all of these outlets simultaneously requires a ton of time and effort. Fortunately, there are companies that have developed powerful software that mitigate this issue. FrigginYeah’s platform allows users to consolidate this process and quickly monitor your product prices across whichever marketplaces or retailer you choose. This helps pinpoint and target MAP violations and shut them down. Saving you countless hours and potential revenue.

MAP Agreements

To protect your brand from any future MAP violations it is crucial that you create a MAP agreement with resellers. A MAP agreement will promote fair competition across distribution channels, defend brand identity and value, and protect your margins. Smaller retailers will also be in favor of MAP agreements because it allows them to compete fairly with larger brands.

Ultimately, MAP violation enforcement and monitoring should be taken seriously. It is important to arm your brand with the correct tools to protect, enhance, and repair your revenue streams now and in the future.