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Userby MapCop : May 24, 2017
One of the most commonly pointed out advantages of a MAP policy is that it restricts price warfare. By setting a floor on prices, suppliers can maintain brand value and ensure an acceptable margin for themselves and their clients. But just how dangerous can price wars be? An ongoing clash between retail titans provides some answers. Walmart Summons a Crisis Weeting? In February of 2017, Walmart summoned...
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Userby MapCop : Apr 26, 2017
Since it was founded in 1994, Amazon has gone through a lot of changes. Originally selling just books, it now carries almost any type of product that you can think of. Once a regular loss-maker, it now enjoys large profits primarily drawn from its cloud computing offerings. Since 2016, it has even had its first physical store location. However, there is one important change that Amazon has so far resisted....
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Userby MapCop : Mar 29, 2017
Minimum Advertised Price policies are not universally popular, and not only because of angry discount retailers. At various times, politicians and the media have described them as a form of price-fixing, and called for them to be outlawed. However, there are major differences between MAP policies and price-fixing agreements that make comparisons between them misguided. What is price-fixing? ?Traditional...
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Userby MapCop : Mar 16, 2017
Selling your products on Amazon can win a lot of exposure for your brand, but for many companies the associated costs just aren't worth it. Their marketplace system forces retailers to compete primarily on price, exerting downward pressure on prices. Your MAP policy is only of limited use here, as Amazon consistently refuses to enforce them, allowing retailers to undermine your pricing structure...
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Userby MapCop : Mar 08, 2017
Your retail partners want you to use MAP enforcement software. A well-enforced MAP policy doesn't only protect your brand image and the prices that your products can command, it also protects your retail partners from damaging price wars and allows them to offer value-added service instead of racing to the bottom on service and price, protecting their brands along with yours. Adopting watertight...
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Userby MapCop : Mar 01, 2017
Amazon's lax policies on resales make it a haven for counterfeiters and unauthorized sellers, as well as a headache for manufacturers. Some big-name companies have already quit the online marketplace, including sandal makers Birkenstock. While Amazon will act against counterfeiters, they do not enforce MAP policies, and so resellers can easily undercut authorized retailers and even capture the...
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Userby MapCop : Feb 22, 2017
No matter how watertight your MAP policy is, it will not protect your brand effectively if it is poorly enforced. Enforcing a MAP means striking a delicate balance. Weak and inconsistent enforcement may signal to retailers that they can get away with selling your products at too-low prices. However, over-aggressive enforcement actions may needlessly damage your relationship with your retail partners....
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Userby MapCop : Feb 15, 2017
Amazon did over 135 billion dollars in sales for 2016, making it the largest online retailer in the world. For many consumers, Amazon is the first stop when looking for products to buy. The sheer size of the market available through Amazon makes it almost inevitable that your products will end up available there, whether it is offered by you, by authorized retail partners, or by unauthorized resellers....
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Userby MapCop : Feb 08, 2017
Are your MAP enforcement strategies endangering your business? Instead of monitoring retailers themselves, many manufacturers rely on their retailers to police each other, saving themselves the effort and cost of proactive enforcement. This strategy is a relic of the pre-internet age, when monitoring retail prices meant paying in-person visits to stores. Despite the risk of lawsuits, manufacturers...
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Userby MapCop : Jan 31, 2017
MAP policies are an excellent tool for manufacturers. They allow you to defend your brand image and the price at which your products are sold, while also encouraging good, value-added retailers to work with you as they do not have to fear being undercut by cut-price sellers. However, MAP policies are far from foolproof. Manufacturers adopting them often make costly and dangerous mistakes. In this article,...
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Userby MapCop : Jan 25, 2017
Business owners cannot afford to ignore brand equity. In fact, many marketing experts have argued that strong brand equity is one of the most valuable assets that a company can have. In this article, we take a look at brand equity and the effects that it can have on your business. What is brand equity? Brand equity, put formally, is the bundle of assets and liabilities attached to a brand that add...
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Userby MapCop : Jan 17, 2017
Unrestricted price competition can be devastating. It forces a race to the bottom that destroys profit margins, erodes brand image, and can lead to reduced product and service quality as companies attempt to lower prices even further. To insulate yourself from this, your business needs to develop pricing power, the ability to charge more than your competitors without losing customers. Pricing power...
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Userby MapCop : Jan 10, 2017
It is a fact, mispricing of your products by retailers can do serious damage to your brand. Building a reputation as a high-quality, premium brand is a slow process, but destroying that same reputation is an extremely quick one. As discussed in previous articles, many manufacturers have seen their brand degraded, perhaps irreparably, by retailer price wars. It shouldn’t be a surprise, then, that...
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Userby MapCop : Jan 04, 2017
Retailers like to offer discounts. Reducing the price of a popular item is a great way to bring in more customers, and it can be done extremely easily. Changing the product itself takes time, and might make it less popular with your customers. Lowering the price temporarily is quick, easy, and in the short term almost guaranteed to raise sales. In the long term, though, too-frequent discounting can...
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Userby MapCop : Dec 27, 2016
America's department stores have had a rough few years, thanks to a sluggish recovery in consumers' purchasing power and the increasing adoption by brands of business models that don't involve them. One of the ways in which they have fought back is aggressive discounting, selling products from well-known brands at prices far below the suggested retail price. This is good for the department...
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Userby MapCop : Dec 20, 2016
Not everyone likes Minimum Agreed Price policies. To their detractors, MAPs look a lot like price fixing, with manufacturers and retailers colluding to shut out competition. It's a serious accusation: price fixing has been illegal under federal law in the United States since the 19th century, and antitrust cases brought against companies have resulted in heavy fines and even enforced breakups....
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Userby MapCop : Dec 13, 2016
No matter how well-written it is, your MAP policy is only ever as good as your ability to enforce it. Maintaining a Minimum Advertised Price requires constant monitoring of your product's prices, swift communication with policy violators, and a willingness to blacklist retailers where necessary. Systems like MapCop make this easy by constantly monitoring prices, automatically generating emails...
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Userby MapCop : Dec 05, 2016
Monitoring your retailers is an essential part of any brand protection strategy. However, problematic retailers are not the only threat to your agreed pricing structures. Many companies choose to outsource production to Original Equipment Manufacturers (OEMs) abroad. They grant the OEM permission to make a specific number of products, and then share all of the necessary intellectual property to make...
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Userby MapCop : Nov 29, 2016
Enforcing a MAP (Minimum Agreed Price) policy can protect your brand’s image while also encouraging good value-added retailers to stock your product. Failure to do so, on the other hand, can lead to a vicious cycle in which your brand image and product quality are degraded by unchecked price competition between retailers. Price Erosion Leads to Poor Service. Internet-savvy consumers can research...
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Userby MapCop : Nov 16, 2016
Are your products being sold under MAP and potentially damaging your brand? You probably already know that MAP (Minimum Advertised Price) is an agreement between manufacturer and retailer to maintain a minimum price when advertising your products. When retailers violate their MAP policy agreements, it can severely damage your brand and lead to loss of sales and bad relations with your customers. Ensuring...
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