When your reseller drastically reduces the price of your product, it also reduces your brand’s value, and conditions and consumers always expect reduced prices for that specific product. In turn, this could tarnish the image of your brand and make it tougher for you to sell that product at the right price.
However, since it’s ultimately up to you who you choose to do business with, executing a MAP policy is the easiest way to keep your official retailers in line with your pricing. To do this, you must:
- Keep your product’s prices regularly updated and make certain to tell your resellers that they can’t sell your product to other retailers who could then sell it at a reduced price.
- Clearly define what constitutes as a MAP violation, which means that you should be as clear as possible so that your retailers won’t find a loophole. Likewise, clearly state the consequences for disobeying your MAP policy, including all appropriate channels. For instance, some brands might consider the “add to cart to see price” a policy violation, while others don’t.
- Be as crystal clear on what would occur if a retailer violates your minimum advertised price policy. In general, brands would impose that have the option of discontinuing business with retailers who won’t follow their policy.
- Offer incentives to retailers who uphold your agreement. Tell them how crucial they are to the success of your brand and expound on the resources and time you spend to deliver the best customer experience, and your brand’s goal to protect the value of the products you (and they!) sell.
- Make your minimum advertised price policy pleasing and beneficial to your retailers, include something along the lines of “We feel that this MAP policy would enable our authorized resellers to profitably advertise and more effectively promote out products’ real value to consumers.”
- Make sure to appoint a MAP policy administrator for your resellers, if you have the resources to do so, or perhaps one for every three to four reseller. This person would be as sort of middleman between you and your resellers.
After struggling to build the reputation of your brand, the last thing you want is for a retailer to tarnish your reputation just because you didn’t have a MAP policy in place. Consider these when creating your MAP policy to increase the chances that your resellers would always stay in line with your policy.