MAP Monitoring or as we know it Minimum Advertised Price can be really important for any online sellers. Monitoring the MAP is a crucial step for any observer to understand the e-market by determining the differentiations in it.
Minimum Advertised Price monitoring can help any seller to understand which retailer putting their brands’ image under risk by selling for cheap.
What Is MAP Monitoring
Minimum Advertised Price is about the lowest price for your product to be sold by retailers. Manufacturers who set a MAP can define their products value by their own control and protect the name and the image of the brand by keeping the prices according to their own determination. In the e-commerce, to compete with other retailers, some sellers decide to sell for less. However, most of the time, they should be aware and careful for the price tags they use for selling products of other manufacturers for MAP decisions. If a retailer decides to sell for less, even though there is a MAP for a certain product, it can cause a problem between manufacturer and themselves.
Violating MAP Policy
Violating MAP policy may have its own results and those results are never in favor of retailers.
Why manufacturers keep such a strict policy about prices?
The answer for this is about keeping a standard for their brand and products for all over the world. With such standardized price tags, manufacturers can easily assess their value in the e-commerce; and they can determine their value and image in the competition. To keep a better reputation for their image and brand, to have a better place in the competition, MAP can be really important for manufacturers.
MAP can also allow the smaller retailers to compete with larger ones. With such standardized prices, many different scaled sellers online can have a chance in the competition.
If it has such importance for the brand, why do retailers dismiss the MAP agreement between themselves and the manufacturers? Mostly the reason for this is about competitiveness edge. Retailers who would like to keep a competitive edge in the e-market, they choose to sell for less. However, this is not the only reason. In such cases, some leaks in supply chains, means unauthorized sellers put retailers into such a position for selling less.
To prevent any of the reasons above, MAP monitoring can be important. When a retailer chooses to sell for less, it will damage the manufacturer, not the retailer. Price inconsistencies can harm the brand reputation, image and the change of rebuilding trust between potential customers and the brand itself. To prevent this situation MAP monitoring can be crucial.
Establishing A MAP Monitoring
Establishing a MAP monitoring can be made manually and automatically. Many companies are choosing to track their prices manually, due to the physical store conditions. However, with the recent changes in the e-market, there are a lot of manufacturers who decided to monitor their prices automatically as well.
To establish a MAP monitoring, a manufacturer should find all of the sellers and seek for their advertised prices; contact and warn if there are any price violators; re-check the situation; seek for retailers who chose to not to apply MAP policy and give a final warning. It takes a lot of time and effort to seek for all of the retailers and check all the necessary items. Smaller companies can handle with this situation, especially if they have less retailers in their corner.
If they choose to monitor their prices with an automated MAP monitoring system they should utilize an advanced price intelligence or price monitoring tool. These tools can automatically gather the e-market price data and provide them to its users.
Price monitoring tools can automate the processes of providing the names of all of the retailers; information related to the price tags of all of the retailers; and showing if there is a violation in the price tags.
Automation of such processes can make manufacturer save time and effort during their monitoring process. It provides a stable and trustable price monitoring run for the manufacturer. Price intelligence or price monitoring tools which can provide MAP monitoring systems can offer its users updated data regarding the price tags for a daily basis. PriceRest can provide such data to its users with regular updates and inform them if there is any violation.
Minimum Advertised Price or MAP monitoring can be really important for m
anufacturers. Tracking prices can help manufacturers to keep good business between authorized sellers and themselves. With such monitoring act, they can also protect their brands’ image from not-standardized prices and not trustable shopping experiences.
If you choose to monitor your prices with automated and advanced technology help, join PriceRest today.
To have a better understanding of e-commerce for success, join today!
And see What PriceRest can do for you.
Request a personalized demo of PriceRest
We look forward to showing you how our platform allows you to optimize the pricing, execution, and measurement initiatives that matter most to your brand and products.
It is Free!
What can I expect?
- A brief conversation to assess what PriceRest can do to help your pricing strategy
- Live product demo with insight into how to get the most benefit from PriceRest
- Discuss your prices KPIs to determine the best path forward for your business
- No commitment required