If you’re having problems with minimum advertised price (MAP) violations, taking quick action is important for dealing with the situation. MAP violations pose a serious risk to the value of your brand. You probably know how to resolve these problems with your authorized sellers – simply notify your contact that you’re aware of the price violation and that they must return to compliance with your policy or risk their ability to carry your products. But what about the unauthorized, unknown sellers advertising your brand for less than MAP?
Category Archives: Minimum Advertised Price (MAP)
ORIS Reveals Top Tips for Sellers and Announces Record Growth with Industry Veteran at its Helm
When you receive unexpected sales from dealers that aren’t on your authorized seller list, it can seem like you’ve gotten lucky. Certainly, the first bump in revenue is a welcome windfall, but it’s after that, when you factor this additional cash flow into your forecasts for the future, that the risks begin to grow. The moment you begin to rely on unpredictable revenue from unauthorized sellers, you increase your chances of inaccuracies for two main reasons:
Unknown sellers of your products – these anonymous dealers can sometimes add a pleasant surprise to your actual sales numbers. As long as you’ve still got all of your authorized sellers too, what’s not to love about more companies selling your products?
When you find your business inundated with anonymous sellers violating your minimum advertised price policy, don’t you wish you could figure out who all those sellers are? It would certainly make enforcing your MAP a lot easier. You’d be able to tell who started the chain of events leading to a price cascading problem in which some of your larger sellers end up violating MAP as well. Whose prices are your sellers matching? Read More
Great Day, a leading American manufacturer of aluminum motor sport and powersport products, recently experienced some setbacks in expanding their business to more distributors because they did not have a minimum advertised price (MAP) policy in place. Upon implementation of a new MAP policy and partnership with ORIS Intel for monitoring and enforcement, Great Day has seen a significant increase in margin and revenue, as well as a jump in enthusiasm from potential large retailers and distributors. Read More
2XU, a leading athletic apparel company, began noticing issues with minimum advertised price violations online about 3 years ago when they started selling directly to Amazon. 2XU was over exposed in the market and their brand and margin were suffering as a result. After partnering with ORIS Intel in early 2015, 2XU has seen a significant decrease in MAP violations and number of Amazon sellers, as the company has targeted ideal authorized dealers to work with and reduced the number of anonymous sellers distributing their products. They’ve even used this success as a springboard to create a new strategy for managing their channel mix to drive sustainable revenue and grow margin. Read More
There’s plenty of advice out there on how to increase revenue in your business, but one thing that’s often left out of the discussion is the effect of MAP policies. Creation and implementation of a minimum advertised price policy can lead to sustainable revenue growth – for you as the manufacturer and also for your best retail partners. Read on to discover how this process can affect your business in a positive way.
By Ryan Marth, Robins Kaplan L.L.P
To succeed, manufacturers must know how to manage and control the relationships with suppliers, retailers and their customers. Minimum advertised price (MAP) policies are a popular tool to accomplish this goal. MAP policies particularly benefit manufacturers who rely on service and brand recognition to make their products a success.