So, just what is MAP monitoring, and what does it have to do with business? Actually, the concept of Minimum Advertised Price is somewhat self-explanatory. It’s the rock-bottom selling price of a product as determined by the manufacturer.
What Makes MAP Crucial
From there, things get a little more complicated with the task of monitoring MAP policies. But, this tracking is an essential part of maintaining product integrity, brand naming, and logo recognition. Without some type of regulating system in place, holding sellers to a quality standard of operations is nearly impossible.
Why Do Businesses Need It?
Before getting into the nitty-gritty of minimum advertised price monitoring, it’s a good idea talk about what makes this practice valuable. There are a few issues to address. Sometimes, competition between businesses gets a little tight and tricky. In some cases, it’s proximity between locations that sparks price wars. At other times, it’s shrinkage from customer theft that forces sellers to move their prices. Whatever the case may be, manufacturers still have an image to maintain. So, certain steps have to be taken in order to get a sense of what’s going with the distributors.
How Does MAP Monitoring Work
So, it’s only natural to ask or wonder what MAP monitoring looks like from a grassroots point of view. Again, this concept starts simple enough but has a few complications to mention as well. It all starts with a roster of products, sellers, and numbers associated with each product unit. Once each component in the system and network are identified the monitoring can begin. The challenge comes from collecting and analyzing data from each seller on a regular basis. The larger the demand and customer base involved the more chances there are of mistakes being made. This can come from simply honest human error or sloppy paperwork.
Bringing it all Together
There are about a handful of actions that have to come together in order for real minimum advertised price monitoring to happen. First off, there has to be some kind of service in play. That means when a manufacturer sets the MAP, the distributors should have a mind to stock appropriately. Consultants may be needed to collect all the data before taking any action. Sometimes, there’s a little wiggle room between a MAP policy and the best interests of a seller. In these circumstances, using consultants for arbitration is a win-win scenario for all parties involved. Consultants handle can handle a lot of the heavy lifting when it comes to administration or litigation.
Ultimately, MAP monitoring is awesome for business. It’s what makes convenience stores so great. With a level playing field, these enterprises have a chance to shine brightly. Sure, you can buy milk, or just about anything else, from the grocery store cheaper than at a stop-and-go store. But, they’re not open late or just around the corner. And, that’s what makes MAP monitoring so valuable to doing business.