Minimum Advertised Price (MAP) Policies are Designed to Benefit Dealers - Not Consumers
Minimum advertised pricing is a method upon which manufacturers dictate to retailers the price which must be advertised for a given product. Many times, this advertising is restrictive to the point of ensuring the consumer pays too much for a given product. (Also note, Minimum Resale Price (MRP) policies are a close cousin to MAP policies. The difference is that MRP policies dictate the minimum price at which an item can be sold vs. advertised.
*Myth: MAP Policies are Good for Consumers
Fact: MAP Policies are Bad for Consumers Due to Potentially Higher Prices*
Minimum advertised pricing (MAP) often causes consumers to pay higher prices than if MAP did not exist. This is often times due to restrictions in place where a customer has to take additional steps such as calling a retailer to determine the best possible price. If the consumer doesn’t know they need to call, they may end up paying more than necessary for an item.
*Myth: MAP Levels the Playing Field
Fact: MAP Supports Inefficient Businesses*
Minimum advertised pricing (MAP) is often referred to as a mechanism to level the playing field between competitors. This is nonsense. Inefficient business models shouldn’t be rewarded for the unwillingness to change with the times and become leaner organizations.
*Myth: Manufacturers Always Disclose Their Policies
Fact: Some Manufacturers Want to Keep Policies a Secret*
While many manufacturers do in fact disclose their policies, others are much more restrictive. They may restrict a retailer from disclosing that such an anti-consumer policy is in place. If you’re going to have a Minimum Advertised Price (MAP) policy then own it and disclose it. We can disagree on opinions as to the merits of MAP, but “hiding” it makes me lose respect for you.
*Myth: Dealers “Win” by Making More Money with MAP Policies
Fact: Dealers “Lose” When they Don’t Serve Their Customers Interests*
Dealers win the trust of their customers by always providing them with the lowest possible price for a product, not by overcharging them.
*Myth: MAP Policies Are Enforced Both On and Offline
Fact: Many MAP Policies Are Often Only Enforced Against Online Advertising*
Most manufacturers only enforce their MAP policies against online advertising - print, in-store and other mediums are either ignored or exempted from the rules. There are exceptions, but those are far and few between. If we’re talking about fairness and equality in “leveling the playing field” as some manufacturers claim, then they’re failing miserably at this goal. Instead, they’re putting internet dealers at a distinct disadvantage putting handcuffs on their operations while others can wheel and deal freely.
Why are Manufacturers enforcing M.A.P.s ??
Manufacturers are mainly trying to “protect” traditional distribution channels, claiming that they do provide support and service.
Manufacturers want to make sure that dealers with higher overhead costs can make money at selling their products and stay in business. But after all, who hasn’t visited a store to “kick the tires” and then rushed online to save money ??
Do M.A.P.s benefit the Consumer ??
MAPs can sometimes be justified for a complex and technical product.
They are harder to justify when you buy an MP3 player, a camera lens, or a flashlight.
In most instances, it results in higher prices for the consumer with no or little added benefits.
Are M.A.P.s legal ??
Many people believe MAPS are anti-competitive and a restriction of trade. They used to be illegal in the U.S. for these very same reasons. Since 2008, however, they are, unfortunately, legal .