What is MAP?
MAP stands for the minimum advertised price by which a retailer can advertise a product. It’s also known by other terms, such as MSRP (Manufacturer’s Suggested Retail Price) or Street Price and RRP (Recommended Retail price). The term depends on the industry and the region.
In fact, MAP means that a manufacturer has the right to determine the minimum advertised price according to which retailers are allowed to sell their product. In other words, if the retailer makes some advertised price violations, the manufacturer may request to cease the business relationship.
Of course, every country has its own legal regulations, so it would be good to learn more about the MAP regulations in your country. You can read more about it in our blog: What is Minimal Advertised Price (MAP) and why is it so important?
However, let’s return to the more important question. Why is the MAP so important after all?
Behind the MAP
Customers tend to compare the products before making a purchase. During that process, they usually connect the price with quality.
If you’re looking to buy a product, but you’re not so familiar with it, then you’re probably thinking along these lines: “it’s very cheap, probably it won’t last long. There must be a reason why this one is more expensive, it’s certainly of better quality”.
Therefore, if the retailers lower the price of your product too much, it will affect your brand reputation. However, with MAP you can prevent this. As a manufacturer, you can determine what the lowest price that suits you is, and oblige the retailer to follow it. If they try to sell the product below the agreed price, it would be considered as a MAP violation.
Here is how you can protect your brand value with MAP:
How to detect a MAP violation
If you have many products and many retailers with who you’re collaborating, monitoring everything manually is an impossible task. A much smarter option is to have an automated tool, such as Price2Spy, that will do it for you.
In addition to regular price monitoring and alerting, Price2Spy has a mechanism to alert you when an online store (either your competitor or your retailer) violates this price. Such violations will be indicated in the following and very easily spotted by users:
- Alert emails
- Product list
- Product section
- Price Matrix report
- Pricing Dashboard
- The special report named ‘Price below MAP’
Another add-on that Price2Spy has to offer is Capturing screenshots. Regardless if you wish to record any price change or only cases where there is a price violation (MAP), Price2Spy is here to help. The screenshots will be recorded and saved in your account so you can access them whenever you need them. In that way, the evidence about price violations will always be at your fingertips.
Retailers can change the product price very often, sometimes even a few times a day. Therefore, even if you manage to follow them all manually, you’ll eventually make some mistakes. That’s where a price monitoring solution as Price2Spy comes into the picture. There will be no errors, and you and your team will finally have the time to focus on other business aspects. Knowing this trick can help you spot all Targeted price violations any time
How Price2Spy present the MAP violations?
MAP violations can be monitored in various markets and various currencies. In such cases, please make sure to specify the currency exchange rate in your Price2Spy settings.
All instances of MAP violations will be colored in a special color (by default – Orange; this can be customized just like any other color in the Price2Spy color scheme)