Most companies use a minimum advertising pricing (MAP) strategy to ensure that authorized resellers follow the right pricing for products, although an efficient strategy requires more than just that.
A MAP pricing policy also serves to protect the brand, especially for luxury product makers. By establishing this policy, you take certain steps to maintain your brand’s status and retain a sense of credibility among customers.
People are likely to become repeat customers if they can easily find authentic products from authorized resellers, which isn’t possible if you are unable to build a solid network of trusted retailers. You can only start establishing good relationships with retailers if you take out unauthorized resellers from the equation.
Some experts recommend the use of an online monitoring tool for checking product prices on different websites. Remember that e-commerce continues to expand with the likes of Amazon driving growth. At the same time, more physical stores are closing because more people choose to shop online.
Increasing Online Activity
Toys “R” Us has been one of the latest companies that failed to keep up with the growing online retail market. The iconic company, no matter how big, wasn’t immune to the impact of e-commerce. It shut down all of 735 stores in the country by June 30, and it’s now in the process of liquidation.
Other companies may soon follow suit if they are not careful on their online pricing strategies. While MAP policies help, you shouldn’t just solely rely on them to solve your pricing concerns. You should still focus on improving your service, so you won’t need to depend on low prices alone to attract customers.
MAP strategies require a different set of tools and resources. When creating your own policy, it’s best to consider a subscription service that provides you with all the necessary information from just one source.