Are retailers committing MAP violations?

By: Gabrielle Winant

 

The minimum advertised price is meant to protect your product’s value. Contracts are agreed upon between brands and retailers with a minimum price that the product can be sold. This protects brands and manufacturers from losing money or running the risk of having consumers turn to a retailer for a cheaper price. Ensuring the value of your product and the perceived value of your product is important to maintaining profits and how consumers view the deal they are receiving when buying this product above competitors.

Despite the MAP and MSRP protections, there are often violations in-store. Traditionally, one would think, that violating the price protections only negatively impacts the retailer because they eat the lost profits. However, in the days of pricing wars, things have changed. We see in the news consistently that Walmart, Amazon, and other big retailers are embattled in pricing competitions, and by heavily discounting products the vision of cost becomes skewed. Imagine you have your product priced at the MSRP price on your website, but Walmart has your product priced considerably lower. Of course, consumers will choose to buy the product from Walmart, causing skepticism about your pricing strategy.

We see this frequently in data sets collected for clients. Through our mobile crowdsourcing app, we collect thousands of pricing information data points from hundreds of retailers. Oftentimes, we see pricing discrepancies and MAP violations which are able to be rectified because of our trended data. Click here to learn about how we can help monitor price!