If you are in the manufacturing business than you must surely have heard of MAP, it is the Minimum Advertised Price, this means that any resellers or retailers cannot advertise or sell your price at a rate below the price specified by you as MAP.
The price is set by you, the manufacturer to ensure that your profit margin or brand image is not damaged by advertising your products at a rate lower than their value. This is all well and good, but the problem lies with enforcement. Because MAP is not actually a bilateral agreement between you and the retailers, you can’t be sure that the retailers are following your rules.
This is when Map Enforcement Software becomes effective. It will ensure that retailers aren’t bending the rules to clear the stocks. So it is quite essential that you get a MAP monitor that is intuitive, effective and works with your best interest in mind.
Choosing the software
You need to be very circumspect about the service provider you are hiring. They need to have a long standing business reputation and a firm grasp of the latest monitoring technology. Ask them for references and if possible than contact other clients to whom this service provider has provided monitoring software.
Another thing that you should keep in mind is that good service comes at a good price so if a company is offering their software at an unbelievably low price then they are either very desperate or there is something fishy going on. Do not fall for tricks such as these. Ask multiple companies for quotes and then compare the prices against the features they are offering and finally settle for the one that is offering value for money.
Benefits that you can expect
If you can’t enforce your MAP then there is very little point in having one in the first place. With the help of monitoring software you can be vigilant and can monitor your supplies constantly. Constant monitoring would mean that you can catch on to any infractions or violations of the policy by a reseller. If you catch a reseller, you can take appropriate actions against them. However, in most cases, just the knowledge that you are using such software is enough to deter retailers from violating MAP.
Manually monitoring is not only time consuming, it can become nearly impossible if your business is big. It will be a complete waste of your precious time. Buying a software is far more cost effective and efficient compared to hiring an employee to monitor and identify violations of pricing agreements.
Last but not the least such software make it easy to keep track of suppliers who have a history of MAP violations. So, you can easily check if the supplier has repeatedly broken your price floor limit or if it was an onetime thing. Depending on this assessment, you can determine whether you wish to give them another chance or if you should sever all ties.