To better understand what MAP monitoring is, we will start with what MAP is. To begin with, we will say that it is an abbreviation for the Minimum Advertised Price, that is, the lowest price at which the seller advertises the sale of a particular product. Let’s show it with a simple example – a shirt manufacturer sets the MAP at $ 47. What does it mean? This means that the seller can sell the same shirt for the same amount or more, not for less. Brand manufacturers use MAP to keep ads for the sale of the standard of their goods, which is not always the case, as contracts often do not work as intended.
If we look at the figures, we will see MAP monitoring is inevitable today. Every day, 20% of tracked products report MAP violation which leads us to the loss of $ 2.6 billion only in the USA! Also, it is important to mention that 80% of sellers online are unauthorized. To avoid the loss of the country, but also you, as a manufacturer, MAP monitoring is a logical step forward.
Now that we have mastered the basics, we move on to the next, and that is – What is MAP monitoring? If you are a retailer, you are probably familiar with this term. Although we have already mentioned that MAP agreements should be the ones that determine the price of a product, this is very often not the case. It happens that, under the pressure of other competing e-shops, retailers are sometimes forced to go below that price, just to survive in the market, because the competition is increasing day by day.
Others are resourceful, so they use the “leak” in the sales chain, getting goods for less money, and thus the selling price is lower, which ensures their survival in the market. What happens in both cases is that the producer is at a loss. This is one of the main reasons why buyers often accuse manufacturers of large price variations. Then MAP monitoring comes into force to protect the rights of producers and here you can check this. To preserve their place in the market, manufacturers will no doubt take this step.
What this software will help you with is to identify high-risk sellers. It will also prevent counterfeit goods from negatively affecting your market share.
How does it work?
MAP monitoring works on a very simple principle that includes serial numbers, video, text, and other content related to a specific product, all to monitor your product on the market to check if a seller is violating the agreement. This job is done for you by systematized software.
What is achieved by MAP monitoring?
We have already mentioned that this is a concrete way to protect your brand from resellers who do not treat it according to MAP. And now read a few more reasons why each retailer should care about MAP monitoring.
1. The efficiency of Retail Monitoring
To build an outstanding tracking process, you need price tracking software, as it is very difficult to track each one in person. This way, you will be sure that the price agreement has been respected and you will not risk the future of your company due to the lack of this information. This way you will monitor all the prices of your products at the reseller in the market and you will be notified if any of them have violated the MAP.
2. MAP monitoring is the same for everyone
Another important thing is that the manufacturer is allowed to withdraw its brand if the MAP is violated.
3. Preventing price war
It is very important to prevent a price war, and for several reasons. First of all, it affects the future sales and value of the brand itself. Buyers will eventually move to the lowest bidder, which leads to a decrease in loyalty. The fall in prices has a bad effect on the manufacturer for many more reasons, and one of them is the doubt about the quality if the price is drastically lower.
4. Protecting Profit Margins
This certainly benefits both the producer and the seller, because as much as the manufacturer needs to ensure higher sales on the part of the trader, it is also in the trader’s interest to protect the prices of the products to secure a profit.
5. Efficient tracking
Map monitoring software will help you easily track down resellers who violate the agreement. Very often you will see the prominent price of a product and below it an inscription that says – check the best price. This is just another in a series of malversations used by vendors, but MAP monitoring will not miss it.
6. Mutual benefit
We can freely say that MAP monitoring is a winning combination for both parties – the manufacturer and the trader. Some would think that this only goes in favor of the manufacturer, but they are wrong. Why? The reason is very simple – the manufacturer’s brand is supported, and at the same time, MAP offers the trader the lowest price.
7. Protecting the brand’s reputation
This way, you will directly protect your brand and make sure that the sellers follow the given guidelines. It also helps with market research by collecting data and reports via email. This contributes to the mechanization of MAP monitoring in your company.
Investing in this software should certainly be considered a profitable investment that will bring you many of the above benefits when it comes to placing a particular product on the market. Thanks to this software, you will be sure that your brand will not be abused, and retailers will be satisfied, because as we said, they will receive the product at the lowest possible price, without violating any law. So, it is a win-win situation for both sides!