MAP – Minimum Advertised Price

Definition updated on November 2023

What is the significance of MAP (Minimum Advertised Price) in pricing strategies and distribution agreements?

The Minimum Advertised Price (MAP) is the lowest price at which a retailer can advertise a product for sale, as set by the manufacturer or brand. This does not necessarily mean it's the lowest price they can sell the product for in-store or online; it just restricts how they can advertise that price in public. In the world of sneaker reselling, understanding MAP is crucial. Brands, especially premium ones, often set MAP policies to maintain brand value and perception in the marketplace. By ensuring that their products are not advertised below a certain price, brands aim to avoid the perception of their sneakers being "cheap" or devalued. For sneaker resellers, this means that they must be aware of these policies when advertising products, especially if they are authorized dealers of certain brands. If they advertise below the MAP, they risk facing penalties or losing their dealership rights. However, it's important to note that once a customer is in a store or has an item in their online cart, the item can be sold for a lower price. The MAP only governs the advertised price, not the final sale price. This policy helps ensure a level playing field among retailers and avoids price wars that can potentially damage the brand's reputation or desirability in the eyes of consumers.

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