What is MAP Pricing?
Minimum Advertised Price (MAP) is the lowest price a reseller is able to sell a product for.
The reasoning for the MAP implementation is to ensure resellers do not undercut other sales channels in order to make revenue in other ways. Larger resellers who buy in bulk may want to sell a product for lower than the brand or other resellers and make up any lost profit by other avenues.
Implementing a MAP price can help ensure a level playing field for resellers and also help to protect and maintain brand equity.
MAP pricing is important for brands with both wholesale and direct to consumer (D2C) sales channels as it can encourage brand loyalty and direct sales over discounted options elsewhere.
Minimum advertized pricing also helps give resellers and wholesale accounts assurances that the brand itself won’t start selling the product for lower than they have advertized.