Monitor and enforce MAP pricing before during and after MAP holidays
Brands increase sales by offering MAP holidays to their resellers. However, if you can’t be flexible and sensitive with your resellers at this time, you will do more harm than good. This article covers best practices on maximizing the value of your MAP holidays.
Manufacturers and wholesalers often permit resellers to reduce prices during major promotional periods such as Amazon Prime Day, Black Friday, Cyber Monday, and Christmas in the United States and Canada. Additionally, MAP price holidays may be granted in the US for holidays such as Memorial Day, Labor Day, Father’s Day, or Mother’s Day and holidays such as Canada Day, Victoria Day in Canada. Each firm may have its own MAP holiday schedule. The MAP suspension calendar may vary by category and geography. For example, we know apparel brands that offer MAP suspension holidays every month. During these periods, and for a few days before and after, retailers can lower prices below the Minimum Advertised Price (MAP). This strategy aligns with shoppers’ expectations of getting bargains on the holidays, and helps brands attract new customers, clear inventory, and make room for new products.
A MAP Price Holiday refers to a temporary reduction of the Minimum Advertised Price (MAP) allowed by manufacturers and wholesalers during specific promotional periods in the US and Canada. During these price suspension holidays, and for a few days before and after, resellers can lower prices below the designated MAP to attract shoppers looking for a deal.
While MAP holidays offer sales advantages, they also pose challenges for brands. Resellers are allowed to reduce prices for the holiday and revert to MAP pricing after the holiday period. However, three issues can disrupt this process:
These challenges can frustrate compliant resellers who see their sales drop due to unfair competition, resulting in complaints to manufacturers or wholesalers. This dissatisfaction can lead to threats of non-compliance or even dropping out of reseller programs.
To effectively benefit from MAP holidays but not get overwhelmed with MAP pricing challenges through this, manufacturers and wholesalers should consider a three-pronged strategy:
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If you are seeking a MAP enforcement solution that is personalized for your business and offers MAP monitoring and enforcement services through your MAP holiday periods, please contact us. We will be happy to discuss your specific needs, share best practices of what has and hasn’t worked with other brands, and support you. Our goal is to offer you accurate and customizable MAP monitoring and MAP enforcement services. While maintaining client confidentiality, we share best practices of what has and hasn’t worked with other brand and sales leaders, wholesalers and distributors in the US and Canada. You may also find this helpful if you wonder how other brand leaders are managing the ever-present MAP violation problems.