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Understanding MAP Compliance and Policies

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What is a MAP Policy?

As a Brand or Manufacturer, it is import to ensure your brand doesn’t become devalued or your authorized sellers don’t get upset about loss of margins due to competition. Lack of control can also lead to Brand Dilution in the market. One way to limit this is through a MAP/MAPP Policy. A Minimum Advertised Price (Policy) allows a Brand or Manufacturer to have all their authorized distributors and retailers agree, via a contract, to only sell at or above a certain price. Promotions, coupons, seasonal deals, and other unique situations can always be integrated into such contract, but this allows distributors or wholesalers to maintain their margins along with retailers knowing they won’t be undercut by other authorized distributors.

What can’t a MAP policy do?

MAP policies are a tool, but they aren’t a miracle worker. Anyone who doesn’t sign the contract with the manufacturer or brand does not have to adhere to such MAP policies. Therefore it is important to understand and control your supply chain strategy. If your products are in hundreds of retail stores, controlling pricing, sales, coupons, and clearance pricing can be much more difficult.

A MAP policy also does not prohibit a seller from selling a product at a lower price because this can interfere with pricing fixing laws. However, such seller cannot advertise the product, either in-store, online, or by other public means that such products are a lower price. This allows businesses to work directly with customers, possibly with unique bulk discounts or special order pricing, without violating a MAP policy.

What can be done?

Understanding your supply chain is incredibly important, but not every brand is best fit for a MAP Policy. First, you need to identify if implementing a MAP policy is worth the investment.  Assuming it is a fit for your brand, MAP pricing needs monitoring. When a seller is breaking MAP policy, such as a “Entire store 10% off!” sale, “All [your product category] 30% off!” sale, or even simply pricing competitively, you need a notification system that alerts you when this happens.

In retail stores, this can be extremely difficult to build a notification system. However, building close relationships with retailers, both online and in brick and mortar, you mitigate the risk of issues arising. When a retailer, whom you have a MAP contract with, has violated your policy, it is always best to reach out and inform them. Often this was a simple mistake or typo when handling pricing adjustments. However, if the issue persists, then you can evaluate the termination of that retail relationship or have meetings with the retailer to see if you can come to a resolution.

Example Scenarios

ABC Candy

 • ABC Candy is sold in most Walmart stores and convenience stores in the US.
 • ABC Candy deals with 5 main distributors and 30 smaller distributors to reach all these retailers.
MAP Strategy
While it may be reasonable to do some control on pricing at the distributor level, it is very unlikely you will be able to control every retail store in this situation as you don’t know all your retailers. Your online direct retailers might be able to be spoken to, but resellers of your products, both from retail and wholesale channels, aren’t going to be well known.

XYZ Supplements

 • XYZ Supplements works with 5 online stores, 2 Marketplace Sellers, and a select group of carefully curated brick and mortar retailers.
 • XYZ Supplements is aware of most, if not all, the retailers that would represent their brand and products. However, there are some retailers running sales or coupons that are upsetting the brick and mortar stores.
MAP Strategy
In this situation, it would be critical for XYZ Supplements to work with a partner that understands supply chain, MAP Compliance, and marketplaces to develop a MAP policy strategy that can be monitored and analyzed for violations.


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