Why It’s Important to Monitor MAP Over Holidays
Being right in the middle of the holidays, it’s important for you to monitor your Manufacturer’s Asking Price (MAP) to ensure you don’t have an increase in MAP violations. MAP violations occur when retailers or resellers sell products at prices lower than what is set by the manufacturer. This article will explain why MAP violations are more likely to occur during the holidays, the potential consequences of MAP violations, and the steps that you should take to ensure you don’t have an increase in MAP violations during the holidays.
Manufacturer’s Asking Price (MAP) is the minimum retail price that manufacturers set for their products. It is intended to ensure a level playing field for retailers and resellers and prevent price wars. During the holiday season, retailers and resellers often offer discounts and promotions on popular items in order to attract more customers. This can lead to MAP violations if the discounted prices are lower than the manufacturer’s asking price. The holiday season generally includes Thanksgiving (Black Friday & Cyber Monday), Christmas, and New Year’s.
MAP violations are more likely to occur during the holidays due to increased online sales from e-commerce sites, increased competition and discounts offered by vendors or resellers, and higher demand for certain products due to holiday promotions. For example, during Black Friday and Cyber Monday, retailers often offer steep discounts on popular items in order to attract customers. This can lead to MAP violations if the discounted prices are lower than what is set by the manufacturer.
The potential consequences of MAP violations can be severe. Retailers who violate MAP can suffer from decreased revenue due to customers buying from other retailers with lower prices. Additionally, trust between manufacturers and retailers can be damaged if retailers are found to be violating MAP. Lastly, manufacturers can experience a loss of brand reputation if their products are being sold at discounted prices that are lower than what was intended by the manufacturer.
In order to avoid MAP violations during the holidays, you should take steps to ensure you are monitoring your listings on online marketplaces regularly. Additionally, you should increase enforcement efforts and notify violators immediately when they are found. Furthermore, manufacturers should increase communication and education efforts to retailers in order to explain why it is important to abide by MAP policies.
When enforcing MAP policies, you should use automated tools and technology to monitor MAP violations quickly and accurately. Additionally, you should have a comprehensive enforcement process in place that outlines how MAP violations will be handled. It is also important for you to communicate with retailers about MAP violations and provide guidance on how to avoid them in the future. Lastly, appropriate measures should be taken when dealing with violators in order to ensure that similar violations do not occur in the future.
It is important for you to monitor your Manufacturer’s Asking Price (MAP) over the holiday season in order to avoid an increase in MAP violations. MAP violations are more likely to occur during this time due to increased online sales from e-commerce sites, increased competition and discounts offered by vendors or resellers, and higher demand for certain products due to holiday promotions. The consequences of MAP violations can be severe, so it is important for you to take steps to ensure they don’t have an increase in violations during this period. This includes regularly monitoring listings on online marketplaces, increasing enforcement efforts and notification processes, increasing communication and education efforts with retailers, using automated tools and technology for monitoring purposes, having a comprehensive enforcement process in place, communicating with retailers about MAP violations and providing guidance on how to avoid them, and taking appropriate measures when dealing with violators.
Contact Bridge Below so we can help you with your MAP program.