Weighing the Pros and Cons: Monitoring MAP on Some VS All SKUs

In the intricate world of retail, Minimum Advertised Price (MAP) policies are an indispensable compass. Businesses, however, often face a dilemma—should they apply MAP monitoring to a select number or all Stock Keeping Units (SKUs)? In light of employing a MAP monitoring company, this decision becomes especially crucial, as the quantity of SKUs monitored directly impacts cost. This article presents a balanced view of both strategies, keeping the financial aspect in mind.

Monitoring MAP on Some SKUs

Pros:

  1. Economical and Targeted: By focusing on select SKUs, you’re able to maintain financial control while ensuring high-value or highly visible products maintain their market value. This targeted approach, while cost-effective, can still uphold the reputation of significant segments of your brand.

Cons:

  1. Potential for Brand Damage: By leaving some SKUs unmonitored, there’s a risk that these products may be subject to price undercutting, which could harm your brand’s reputation and perception of value.
  2. Channel Conflict: Retail partners observing MAP on selected SKUs may feel disadvantaged when they see other unmonitored products being sold for less, potentially leading to retail disagreements.

Monitoring MAP on All SKUs

Pros:

  1. Maintaining Brand Integrity: By monitoring all SKUs, you ensure consistency across all products, reinforcing your brand’s credibility and protecting its value in the market.
  2. Holistic Price Erosion Prevention: It provides a comprehensive defense against price erosion, ensuring price stability across your entire product catalog.
  3. Fair Competition: By monitoring all SKUs, you foster a fair competitive environment among retailers, focusing the competition on customer service and overall experience rather than just price.
  4. Improved Forecasting: Full SKU monitoring aids in inventory management and forecasting. With consistent pricing across all SKUs, you can predict sales patterns more accurately.

Cons:

  1. Increased Costs: Monitoring all SKUs involves higher expenditure. MAP monitoring companies typically charge based on the number of SKUs monitored. Thus, businesses with extensive product ranges need to be prepared for this increased financial commitment.
  2. Reduced Retail Flexibility: Overly strict MAP policies across all SKUs could limit retail partners’ pricing flexibility, especially if they need to move slower selling stock.

In terms of digital marketing, remember that search engines generally favor consistency, meaning monitoring all SKUs could have SEO advantages. On the other hand, focusing on select SKUs allows for concentrated SEO efforts.

The choice between monitoring some SKUs or all ultimately depends on your business size, financial resources, and brand strategy. As you weigh the benefits against the cost, considering the breadth of monitoring required can help you arrive at a financially sensible and brand-conscious decision. With a MAP monitoring company, you can efficiently manage this balance and maintain brand integrity, even as you control costs.