MAP (Manufacturer Approved Pricing or Minimum Advertised Pricing)
The minimum advertised price set forth by the respective manufacturer’s guidelines for distribution. The guidelines restrict balance and scale distributors from advertising below a certain price, which is why almost all distributors have the same crossed out price. Unfortunately, it only causes headache and confusion for customers such as yourself so if you have any questions about pricing, please ask us. Contact us for below MAP prices.
Minimum Advertised Pricing was established in 2007, when United States manufacturers implemented a legal agreement (MAP) as a way of effectively protecting their brand equity. This is because price is a major factor in how consumers perceive a brand’s value. Manufactures strive for prices that are low enough to attract consumers, but high enough to maintain the equity of the brand. So in order to protect the prices of their products, MAP Policy agreements between distributors and manufacturers essentially establish a price floor that retailers cannot advertise below. With that being said, sometimes retailers cut corners to make sales. As a means of enforcement, many manufacturers monitor product prices across their reseller network using automated price monitoring. Price Monitoring softwares scan every corner of the internet for Manufacturer’s Universal Product Codes (UPC). This is because gray market distributors are most likely to abuse MAP policy because they are not listed in any networks. When MAP is abused, other retailers drop the prices of their products and when that happens, the brand is cheapened by multiple retailers dumping their price.
In a perfect world, distributors should understand that they are not getting a shorter end of the stick than other competitors, and should not accuse manufacturers of selling their products with different terms or prices. MAP Policy is supposed to bring uniformity which can actually smooth out the selling process with resellers. A mutually agreed upon price floor can lead to intensified competition beyond pricing. Overall, it is not advisable for distributors of scales to lead with price in their marketing efforts; distributors must look for other ways to attract customers without breaking any MAP agreements.
If you have any questions or concerns about Way Up Scales’ online advertising, marketing practices, or prices then contact us we’ll be glad to assist.