As a manufacturer, you know well that the way you manage your relationships with retailers (and their customers) and suppliers will determine how best your business would be a success. If you rely on brand recognition when marketing products and identifying target clients, you will find minimum advertised price (MAP) policies to be useful.
MAP policy monitoring is critical in today’s showrooming consumer behavior. In this case, you face a high risk of losing your hard-earned investment if you don’t start placing your brand in online or discount stores.
Before you enforce your MAP policy, however, it’s best to first identify the areas you should be keen to adhere to. Here are three of the most common ones:
The Antitrust Counsel
Enforcing a MAP policy could expose your business to the risk of treble damages and civil penalties from anticompetitive conduct under antitrust laws. It’s, therefore, advisable that you seek the guidance of an antitrust counsel to avoid these hefty litigation penalties.
Opt for Customized MAP Policies
While a particular MAP policy works for one manufacturer, it doesn’t mean that it will also work for you. Find a MAP policy that matches your business requirements, especially in addressing the needs of your suppliers and retailers.
Enforce the MAP Policy Consistently
Establishing a MAP policy is only the start. After creating this plan, it’s best to follow it through from time to time — with even enforcements to adjust on how your business and the market change.
As a manufacturer, you may not have much influence in the ever-growing showrooming trend. That doesn’t mean, however, that you should stick to traditional stores. After all, if this plan is not yielding as much profit, then it’s time to think of a new strategy.
If showrooming has already affected the productivity of your business processes, find and enforce a MAP policy to protect your business and your supplier, retailer, and consumer relationships.