Everything You Need To Know About The MAP Policy

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The business owners who are not familiar with MAP policy are missing out a lot. And we are going to provide you with good reasons as to why.

Let’s introduce you to MAP Policy itself before getting into any further details. It is the policy that restricts the retailers to sell the product at a particular price. The owner of the brand gets to decide that price as per their business strategies.

Pros and Cons of MAP Policy

Now that you have developed an idea about MAP Policy, the next step is to make you familiar with the good and bad it comes with.

Pros

  1. With MAP Policies brands get to create a particular standard with regard to price expectations in the market.
  2. It may be considered bad for affecting the sales considering that retailers are allowed to sell the product at an enforced rate. But these policies work the best for the final sale price.
  3. MAP policies help brand owners enjoy authority over the price perception in the market.

Cons

  1. MAP Policies are considered to increase administrative workload.
  2. It limits retailers’ control to a certain level. Some retailers prefer freedom.
  3. MAP Policies directly influence the competition that brands have in the market. Therefore, the success of your business largely relies on it, one wrong decision and the whole image crumbles.

 Ways of Creating MAP Policy

With the provided details about Amazon MAP policy, you would have developed quite a

 Ways of Creating MAP Policy

n image. If you have decided to enforce MAP policy for your brand, you can go for any of the following ways.

  • Never Consult Retailers

The MAP policy should be created independently by the brand. Its created based on the amount that the brand can afford in accordance with the budget and other such things.

If you would consult retailers, they would try to benefit themselves and not you. Moreover, consulting retailers for MAP policy is regarded as price-fixing which is a violation of the law. If you wish to be on the safer side, never involve any third party while making the MAP policy.

  • Effective Communication

Better or clear communication plays a key role in maintaining the positive relationship between the brand and the retailer. The MAP policy created by the brand should be easy to understand. And if it is not, you should ensure better communication so that retailers get the exact idea of the MAP policy. You can even use PowerPoints or a video presentation to effectively communicate your MAP policy.

This way, the expectancy of any mistake from retailers’ side, becomes less. Moreover, better communication results in a better brand-retailer relationship.

  • Unique MAP Policy

A successful business requires you to invest the money in several instances. Drafting a unique MAP policy is one such area. Instead of going on with a general MAP policy template that many other businesses may be using too, you should hire a professional MAP policymaker. And if you don’t want to trust an outsider, you better plan a MAP policy based on proper data.

You can hire the professionals like Channel Precision to make you aware of profitability forecasting. Unique MAP policy is important. That is because a unique MAP policy would attract customers more towards your brand.

  • Rewarding Compliant Retailers

When planning the MAP policy for your brand, you should also introduce the cooperative fund that can prove helpful for compliant retailers in covering the cost of the market. The extra support that you offer to the compliant retailer, may help them build a reputation in the market. That is a win-win situation for the brand because the retailer would become loyal to your brand and would try to do their best in making success for your brand.

  • Include Seasonal Expectations

Both the customers and retailers expect brand owners to include seasonal expectations in the MAP Policy. Customers expect to enjoy discounts on Black Friday, End of Season, Christmas, etc. Brands that keep in consideration these facts are likely to make more success in their business. 

Including seasonal expectations in a MAP policy, generates more sales. That kind of flexibility results in maintaining a good reputation in the market and a good relationship with retailers. 

  • Constant Evaluation

If you have just introduced a MAP policy for your brand, you cannot be sure about it making success or not, until and unless you evaluate it in particular intervals. Only then, you will be able to enforce the revised MAP policy. 

Wrapping Up

Wrapping Up

No matter how minute the process of policymaking may seem, it is crucial and can take your business to the next level. The rising competition among brands from across the world makes it pretty challenging for every individual to succeed. Therefore, You should hire professionals like Channel Precision for MAP policy and be an active member of the race.