Retailers are constantly watching for each other to drop prices. If you're only keeping tabs on the larger sites like Amazon, you're likely to miss those who actually start the price games. By the time sites like Amazon do drop prices, a domino effect often quickly follows. Don't let this happen to you - make sure you're monitoring and enforcing your MAP policy effectively.
Establishing a minimum advertised price (MAP) policy is an important step toward taking control of price discounting problems in your industry. With MAP in place, you have legal grounds to enforce the minimum price at which retailers advertise your products. If you are just beginning the process of creating a MAP policy, the following tips will give you a good place to start.
While the number of independent bike shops has fallen sharply in recent years, the implementation of minimum advertised price (MAP) policies in the industry is helping cycling culture continue to thrive. When intense price competition is no longer an issue, smaller stores can compete with mass market online sellers. This means more personal interaction, knowledge sharing, and community building. In addition, much more of the money spent by cyclists stays in their local economy.