How can you use pricing to grow your business? 

In this article, you will learn about MAP (a minimum advertised price), MSRP (a manufacturer’s suggested retail price) and the basic terms connected with Price Monitoring and Price Trackers. Learn more about pricing strategies and price violations – understanding the terms will help your business grow and your company will stay competitive on the market.

First of all, let’s explain what MAP Pricing and MSRP Pricing are and what are the main differences between them.


What is MAP – a minimum advertised price?

From your perspective as a manufacturer, a minimum advertised price protects you from underselling your products by the resellers you work with. 

MAP Price is the minimum amount, set by you, that represents the lowest price possible for the reseller to advertise your products. Remember that MAP stands for the advertised price that is displayed in ads, including the offer itself, for end-customer – it means that the reseller still can sell the product below MAP. Secondly, keep in mind that to protect your pricing strategy, you should penalize retailers who advertise your products below MAP level. 

To visualise MAP Pricing with a simple example, let’s say you are a manufacturer of computers. For a Computer XYZ you set the MAP Price equal to $1000. It means that if your reseller displays an ad or an offer with the Computer XYZ, the displayed amount on ad have to be at least equal $1000. 

If you have questions about MAP Pricing and MAP Tracking, Dealavo can help you with price tracking and setting up a price strategy so your company will earn more in the long-term. 


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Keep in mind that MAP is a legal policy in the US but it is not applicable in European Union as a law. Learn more about what you can do to stay competitive. 


What is MSRP – a manufacturer’s suggested retail price?

The Manufacturer’s Suggested Retail Price is the suggested price that is recommended by a manufacturer to its retailer that cannot be enforced. It helps the manufacturer to standardize a product’s retail price, preventing resellers from underselling the product. Secondly, MSRP Pricing is important because it takes into account the costs that are required to sell the product – all connected with price violations, markups, wholesale, retail and even distribution processes. Manufacturer’s Suggested Retail Price also helps in keeping the brand competitive in the eyes of the end-customer. The customer who sees a certain product for a bargain price in a certain shop is less willing to buy it and lowers the opinion about it’s quality and the brand’s integrity. MSRP Price helps the product to stay valuable in the eye of retailer and customer. 


What are the key differences between MAP Price and MSRP Price?

MSRP is not the ultimate price that retailers use or that consumers finally pay. There are retailers who still sell below MSRP – the simplest reason for that is that they want to reduce their inventory. On the other hand, there are some retailers who sell their product above MSRP – it results from simple economy rules – either the product is  in high demand or there are not many competitors in the sector.

The other story is with MAP – it is set for the brand to keep its good opinion and can be enforced. Keeping prices according to MAP puts the company brand in a transparent position. From many sources, customers know how much the product is worth right now so they can easily compare advertisements with the price in brick and mortar stores.

If you would like to talk to a branch expert for more detailed advice, talk with Dealavo. Spot MAP/MSRP violations as well as tell us more about your business and the planned growth.


Wrap up

Now it is more clear what MAP Pricing and MSRP Tracking are. Being aware of options that you have in order to set up pricing strategy accordingly and put MAP or MSRP into your everyday business life to get more happy clients that identify with the brand. Also, take care of the data you have to analyze – only with high quality data, dedicated team and a platform to price monitoring you will thrive in business and grow your revenue according to high standards. Remember that the profit increase, better sales efficiency, wholesome e-commerce strategy and offers beyond competitors are factors that put your business first. 


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