Minimum advertised pricing strategy

Definition updated on November 2023

What is the Minimum Advertised Pricing (MAP) strategy and its role in retail?

The Minimum Advertised Pricing (MAP) strategy is a policy set by manufacturers or brand owners that specifies the lowest price at which a retailer can advertise their product for sale. However, it's worth noting that this does not determine the selling price — retailers can still sell the product at any price they choose, but they cannot advertise it below the MAP price. The main goal of MAP is to maintain brand value, protect smaller retailers who can't afford to offer huge discounts, and avoid price wars among retailers. In the context of the sneaker industry, certain high-end brands or those producing limited-edition sneakers might implement MAP policies to ensure their products aren't devalued through aggressive advertising discounts. For resellers, understanding and adhering to MAP policies is crucial when advertising sneakers, especially on public platforms or in promotional campaigns. Violating MAP can lead to penalties, strained relationships with suppliers, or even discontinuation of supply. It ensures a level playing field among retailers and resellers, where competition is based on factors other than just price, such as customer service, authenticity guarantees, or additional services offered. However, customers in-store or on a retailer's website might find prices lower than the MAP since the restriction only applies to advertised prices.

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