Let’s face it, as a business owner, you want to maintain control over your pricing strategy and protect your profit margins. That’s where a Minimum Advertised Pricing (MAP) policy comes in handy. It’s like having a bouncer at the door of your nightclub, making sure everyone is playing by the rules.
But how do you create an effective MAP policy? Here are some tips to get you started:
- Be clear and concise: Just like your mom’s lectures on doing your homework, your MAP policy needs to be crystal clear. Spell out the specific prices you require your resellers to advertise and the consequences of not following the rules. And, make sure to review your policy periodically to ensure it’s still relevant and effective.
- Lay down the law: No one likes a party pooper, but if someone is breaking the rules, they need to face the consequences. Make sure your MAP policy outlines the penalties for violations, so resellers think twice before trying to undercut your prices.
- Customize your policy: Don’t be a copycat! Your MAP policy should be tailored to your specific business needs. Think about your industry, target market, and pricing strategy when creating your policy. One size does not fit all!
- Call in the reinforcements: When in doubt, consult with an attorney. They can help you understand the legal requirements for MAP policies and provide specific advice on how to create a policy that works for your business. They can even help you enforce your policy if necessary.
Still not convinced? Just look at Apple Computer and Wilson. Apple used a MAP policy to keep all resellers in line and maintain their brand integrity with the iPod. And, Wilson prevented price undercutting by using a MAP policy to protect their profit margins. So, creating an effective MAP policy can be a valuable way to ensure your business’s pricing is under control and your brand remains intact. Now, who’s ready to get this pricing party started?
