Proactive Pricing Management: Identifying MAP Violators with MAP Report 

August 30, 2023
MAP Violations

In the intricate landscape of modern retail, where pricing wars and online marketplaces dominate, a powerful instrument known as the Minimum Advertised Price (MAP) policy has emerged as a cornerstone for preserving brand image and pricing integrity.  

The competitive market often tempts sellers to engage in price-cutting battles, eroding not only profit margins but also the perceived value of a brand’s offerings. This is where MAP steps in as a strategic guideline, setting the threshold below which products cannot be advertised. By preventing unauthorized discounts and maintaining consistent pricing, MAP policies play a pivotal role in shaping how a brand is perceived by consumers, fostering trust and sustaining brand reputation. 

However, brands are not unfamiliar with all kinds of MAP violations even when the policy’s being enforced. According to a recent Harvard Business Review on manufacturers who use MAP policies found unauthorized retailers had violated the policies 50% of the time.

Let’s dive deep into the potential detrimental impact of MAP violations and how to stay on top of them. 

Understanding MAP Violations and Their Impact

MAP violations include various tactics adopted by third-party sellers that damage established pricing standards, from undercutting to unauthorized discounts, and deceptive promotions as well.

  • Undercutting is the most common violation which means pricing a product below the agreed-upon MAP, attracting price-sensitive customers but often leading to detrimental results for both the brand and authorized resellers.  
  • Unauthorized discounts further dent the brand’s image, creating an atmosphere of inconsistency that can confuse customers and harm the brand’s partner network. 
  • Misleading promotions misrepresent the true value of a product through deceptive tactics. Not only does this deceive customers, but it will also undermine the trust built around the brand.  

If MAP violations go unnoticed by brands, it can lead to cascading effects that impact the entire brand ecosystem. 

  • Erosion of brand value. Consistent advertising of product below intended MAP undermines perceived quality, diminishing the aspirational image cultivated by brands. 
  • Unhealthy competition among authorized resellers. The surge in unauthorized discounts triggers competition among authorized resellers, resulting in strained profit margins, damaged brand-partner relationships and disrupted pricing strategies. 
  • Diverted customers and their loyalty. Inconsistent pricing will lead customers to seek reliability elsewhere. 

The comprehensive impacts of unchecked MAP violations extend beyond the list above, it penetrates the very essence of a brand’s ecosystem, its reputation and position within the market.

Expert Guidance on Preventing MAP Violations

For brands to protect themselves from MAP violations, constantly monitoring resellers can significantly help them stay on top of all the reselling activity and enforce MAP policies when necessary. It is now time to learn more about how to tackle the issue more effectively.

Communicate actively with sellers

If you ignore MAP violations, your MAP policy loses its purpose. Maintaining communication with sellers, ensuring authorized resellers understand your active enforcement is key for compliance.

Research shows that notifying resellers of MAP violations, when possible, improves compliance. Be mindful of enforcing penalties, they should not be empty threats or overly harsh, balance is the key. It is suggested to issue a warning first, followed by a fine for repeat offenses, and potentially more severe penalties for repeat violators.

Monitor and track MAP violations at scale

Sifting through tons of data and transactions being created in the eCommerce landscape every day to find MAP violations is like searching for the needle in a haystack. And some of the top retailers would even let you track this due to revenue protection. It’s almost impossible for a team to dedicate all their time and effort to manually monitor and track MAP violations.

Luckily, Syndigo’s MAP Report makes everything easier. It offers insights into any fluctuations between product prices and their corresponding MAP across various retailer sites. It also comes with customizable reporting thresholds to enable the display and categorization of MAP violations, aligning with the chosen parameters for your needs.

MAP violations

And with the preferences being set, you can get alerts when there’s a violation being detected!

Leverage screenshot evidence for proof

Preventing MAP violations goes beyond monitoring, you can elevate your strategy by adopting Syndigo’s MAP Screenshot solution. It provides real-time evidence through a rendered screenshot, significantly strengthening your negotiation power with violators. The rendered file showcases the violating price, product details, and timestamp from a retailer’s site, enabling brands to respond swiftly and hold resellers accountable. This file serves as compelling evidence, which can be easily downloaded and employed to escalate MAP violations to retailers or distributors when necessary.

Brands are empowered to not only oversee products on retailers’ platforms but also extend their reach across various DTC sites. By safeguarding pricing integrity and averting revenue loss across multiple sales channels, brands can proactively manage their market presence and reputation.

Map Violation Screenshot

Maintaining Your Pricing Integrity and Brand Reputation Now!

Monitoring price violations is pivotal for any brand’s eCommerce success. It’s more than your own interests but serves your customers and your distributors.

Proactively manage your pricing integrity and brand reputation with Syndigo. We help you ensure consistent value for your customers while providing a fair platform for authorized sellers to compete and thrive.

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