MAP – “Manufacturer’s Advertised Price”

MAP – “Manufacturer’s Advertised Price”

June 3rd, 2009

It helps when you talk with your wholesale suppliers, to talk in their own language.  Online sellers should know the common terms that REAL Wholesalers use.  This absolutely helps in building good business relationships with them.  Wholesalers have their own industry terms and jargon. As a retailer, it’s good for you to be able to talk with them in their own language. This avoids misunderstandings.  Also, you won’t have to stop them and ask that they explain what they mean.  They’ll treat you more seriously if they sense that you understand their business.

In this next set of tips, we will explore a few of the most common terms you’ll encounter when talking to your wholesalers. While many online retailers have heard these terms, most don’t really know what they mean or even how they influence their selling.

MAP – “Manufacturer’s Advertised Price”

Let’s begin with: “MAP” or “Manufacturer’s Advertised Price”. When a wholesaler requires you use MAP pricing, they are instructing you NOT to sell their products on eBay (or anywhere else!) for LESS than the MAP price.

There’s a very good reason why Suppliers enforce the MAP.  The MAP sets the market’s perception of the value of their products in the marketplace. Price cutting on eBay or other selling platforms by online sellers trying to out-do each other, devalues consumers’ perception of the product and brand.  When this happens, the large brick-and-mortar stores, with overhead costs higher than eBay sellers, stop selling the product because they cannot afford to sell it for those prices and still make a profit margin.

The wholesaler’s biggest volumes come from those large brick-and-mortar stores. If they stop carrying the wholesaler’s products, the wholesaler’s sales volumes slump and they can no longer justify selling the product. The small online sellers eventually loose out because they can no longer source the products. They have in fact, shot themselves in the foot.

The MAP is a protective measure to retain the product’s market value. This protects everyone in the product supply chain.

Click to review more of Chris Malta’s “Wholesale Tips”

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5 Comments

  1. Hello,
    I have a question about MAP – I have an online storefront selling baby products. In this economy I’m not selling squat of certain items and without loosing my investment in the inventory I want to liquidate certain merchandise. However the manufacturer has an MAP. Does this mean that I cannot put these items on sale just to recoup the wholesale costs? I’m not even advertising it on the site or anywhere else. It is by word of mouth and it’s a coupon for all products in this particular category, not just one brand.

    Comment by Dawn — June 10, 2009 @ 5:30 pm

  2. That’s a great question. MAP is specific to the supplier. Every wholesale supplier is going to have different guidelines. But all wholesale suppliers understand how the economy not only impacts there business but theire retailers. I suggest speaking with your supplier representative and explaining what you’re trying to do and work it out. Be up front and tell them exactly which SKUS and where you plan to “liquidate” them. Some suppliers are under restrictions from the manufacturer or certain laws within their industry so they’ll explain if there is a particular reason why they can’t give a “pass” for this one.
    To your success,
    Colette Marshall
    President, WorldwideBrands.com
    http://www.Twitter.com/ColetteMarshall

    Comment by cmarshall — June 19, 2009 @ 2:18 pm

  3. It’s actually a cool and helpful piece of info. I’m glad that you shared this helpful information with us. Please keep us up to date like this. Thanks for sharing.

    Comment by Rayna Schnickel — April 26, 2012 @ 6:33 pm

  4. very good… Thanks you very much !

    Comment by Pamella Gravina — April 30, 2012 @ 6:52 am

  5. This is really a good bit of information. Thank you for posting it. I have been trying to set a fair and competitive price for my company’s products recently and while researching my competition and their prices, I had run across instances of sellers in violation of the supplier’s MAP. These violations really make it difficult for a new company, such as my own, to even compete in the same market and to be able to earn an acceptable or even meager profit, at best, while trying to adhere to ethical business practices and compliance with our supplier’s retail policies. I run an honest and ethical business and intend to continue doing so, but if I can’t compete with unethical retailers, I would just no longer carry the product I can’t compete with. I had actually interpreted MAP to mean “Minimum Asking Price” which, according to your explanation, amounts to pretty much the same thing as Manufacturers Advertised Price. Your explanation of how it works and why it is used gives me a greater understanding of the importance in adhering to my suppliers policies with regard to MAP. More sellers should read this.
    Kudos for the education ^^

    Shari L. Cronin
    President, CollegeTailgatingTents.com

    Comment by Shari Cronin — July 1, 2012 @ 1:47 am

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