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.
Think back to when your company established its minimum advertised price policy (MAP policy). What was your reasoning? Your goal probably involved keeping better tabs on the prices retailers were advertising your products. But if you haven’t been monitoring or enforcing your policy, it isn’t doing its job – and neither are you. Here are just 2 vital reasons you should begin monitoring and enforcing your policy right away.
When you first begin to monitor price changes and enforce your MAP (minimum advertised price) policy, you’re likely to discover a number of violations that you’ll need to deal with. This is to be expected, as retailers have had no consequences for committing violations in the past, and so several of them have done so for their own benefit. Once you send your initial violators the necessary warnings, most should respect your price policy, at least for a while, and raise their prices accordingly. But what do you do in a situation where a particular seller ignores your warnings and is consistently violating your MAP?