Rank: Member
Joined: 12/23/2003(UTC) Posts: 909
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Hey all, any MAP guru's out there?
We have an item that has an MSRP of $233.95.
We have been reminded that the MAP pricing of the item is $199.99.
What has me confused is that all other suppliers with a map policy have the MSRP/MAP at the same price with no room to discount.
Anybody understand my confusion? |
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Rank: Member
Joined: 1/10/2005(UTC) Posts: 714
Thanks: 14 times Was thanked: 1 time(s) in 1 post(s)
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Matt,
We have one manufacturer that has list (MSRP) and then allows us to sell a percentage below list as a discount. I guess MAP policies do not exactly mean that you have to only advertise at list or MSRP, its a set price or percentage discount made by the manufacturer. We only have one manufacturer that has this type of MAP policy. Atleast you can show a bit of a discount ;)
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Rank: Member
Joined: 12/23/2003(UTC) Posts: 909
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It's the first time I've seen this type of MAP pricing enforced. 50/50 on agreeing with it.
The biggest PITA is watching the competitor's not adhering to it. We're taking the necessary step but we don't see competitor's doing it. We drop back down, get the slap on the wrist email and raise back up. All the while, a competitor doesn't change at all... we point this out every time.
I'm still waiting to hear more about the statement that "merchants can sue manufacturer's" about this. |
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Rank: Member
Joined: 1/10/2005(UTC) Posts: 714
Thanks: 14 times Was thanked: 1 time(s) in 1 post(s)
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Welcome to my world LOL. Not only do i have maintain our own website, i have to be the police officer for all others. It has been a rough two - three years since our first MAP policy. We played the raise and lower game and got our dealership revoked in one instance. Its hard because others still never complied and they still have their dealership. Luckily i complained so much about it everyone is pretty much in line now, but we still don't have our dealership back. I'm convinced it's because of our look of our website. We get all the attention... Yet no one knows we are such a small company ;)
I'm really looking forward to hear more about how "merchants can sue manufacturer's" as well. If a manufacturer presents a MAP policy, they should be legally obligated to enforce it within a timely fashion. The "big" small players shouldn't get all the attention like ourselves.
(Oh yeah, off topic, even though we got all the complaints, we wouldn't be the leader in the industry if it were not for you Matt and Noah @ Resposio)
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Rank: Member
Joined: 12/23/2003(UTC) Posts: 909
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LOL... thanks bryan :) all in a days work, you picked it up quick and ran with it! |
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Rank: Member
Joined: 1/10/2005(UTC) Posts: 714
Thanks: 14 times Was thanked: 1 time(s) in 1 post(s)
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After doing some more research with our competitors... i found out a trick that they do: ON shopping websites like Shopzilla, Google Base, etc., they advertise low prices, below MAP, but once you click on their website, their prices are inline with the MAP policy. How is this legal, AND, why are the manufactuers not doing anything about it? This gets very fustrating.
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Rank: Member
Joined: 1/10/2005(UTC) Posts: 714
Thanks: 14 times Was thanked: 1 time(s) in 1 post(s)
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I just had another manufacturer call me and say we are not allowed to show any pricing on the internet. No passwords, not in shopping carts, not at checkout. I thought that was illegal too?
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Rank: Member
Joined: 12/23/2003(UTC) Posts: 909
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Even in all of our technological glory, we still have sections of industries working in the prehistoric era.
Unbelievable... sounds like that manufacturer has some long term relationships at stake. Similar situation happened with my client and the assumption is because the manufacturer is getting heat from some large distributors that have been with them for 30+ years. |
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Rank: Member
Joined: 3/3/2006(UTC) Posts: 1,737
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Originally Posted by: "Bryan" I just had another manufacturer call me and say we are not allowed to show any pricing on the internet. No passwords, not in shopping carts, not at checkout. I thought that was illegal too? Gonna be pretty tough to sell their stuff, huh? If they have a sales manager, I'd like to know where he learned his marketing skills, and in what decade. |
Optimists invent airplanes, Pessimists buy parachutes. |
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Rank: Member
Joined: 1/10/2005(UTC) Posts: 714
Thanks: 14 times Was thanked: 1 time(s) in 1 post(s)
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yeah, lets see how long it takes for other websites to change their prices to no price. I was told a couple days for the entire internet to convert. uh huh: I was told that by a manufacturer 3 years ago and there are still prices floating around. I'll report back with results in a few years LOL.
I am curious if this could hold in court: We got our dealership revoked because we made a mistake in our pricing and ended up showing a price on the website when the MAP policy states you cant. This was back in August. I searched today and found tons of websites advertising prices, which again, their policy states you cant. How come their dealerships have not been revoked and why have i yet to here from the manufacturer?
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Rank: Member
Joined: 4/19/2005(UTC) Posts: 51
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The majority of our larger manufacturers use MSRP and MAP pricing. Both mean different things but depending on the manufacturer they can be the same price. Manufacturer Suggested Retail Price is just a guideline for you to sell the item at and the Manufacturers' Advertised Price is the lowest price that you can advertise it. Manufacturers legally are not allowed to tell you what you can sell the items at. However they can determine who they sell their products to. This gives them the right to take away the line from any retailer for no reason (the reason being below MAP pricing). The last big case I heard was won by the Manufacturer at the Supreme Court.
At our company we have come up with a way to get the manufacturers attention when another website is below MAP pricing. We simply call them and ask them "what promotion we missed. The website below MAP must be receiving a special promotion that we didn't get since you are letting them sell below MAP." Depending on the manufacturer and their response, we tell them we will have to match their prices until they fix the issue. Being one of the larger retailers in our industry we throw our weight around a bit. We do get threats to have lines taken away though. This problem is not going away and is only getting worse with the economy.
We did just start a new internal marketing campaign that allows us to discount products based on the location of the customer's IP. This may come in handy to take out Manufacturers areas for certain sales but I will let you know how this goes. |
Jason Pace |
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Rank: Member
Joined: 12/23/2003(UTC) Posts: 909
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We've tasked one of the part-timers to be a price sniper. We've gathered as many competitor's as we can find (adding daily of course..LOL) and the items that we are subject to policy on. Daily searchs and email submissions.
Google Base is awesome to use for this research. Set your items per page to 50 or 100 and you're cruising the competition all on one page!
Some suppliers are getting really annoyed at us, but we're constantly pointing out that we're adhering to policy. Don't shoot the messenger, get off your a33 and police your resellers.
To quote a favorite movie, "Am I the only one that gives a S&&T about the rules?!?!? Mark it zero!" |
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Rank: Member
Joined: 1/10/2005(UTC) Posts: 714
Thanks: 14 times Was thanked: 1 time(s) in 1 post(s)
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yeah I use google base a lot for that. Bottom line for us is will the manufacturer take action and when.
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Rank: Member
Joined: 12/23/2003(UTC) Posts: 909
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Just received a registered letter from another manufacturer. We've gone back and forth expressing consent if and only if we see the 9 other competitors on page 1 do the same thing.
Honestly, selling at their MSRP is fantastic for us....but now we play the waiting game... |
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Rank: Member
Joined: 1/10/2005(UTC) Posts: 714
Thanks: 14 times Was thanked: 1 time(s) in 1 post(s)
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here we go again. Same competitor, same manufacturers. We've had MAP policies from 3 different manufacturers since 2007. Everyone complied. Last month, everyone complied. This month, i go to one of our biggest competitor's website... they are not in compliance for all three manufactuers: ~500 products.
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Rank: Member
Joined: 12/23/2003(UTC) Posts: 909
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Notify the manufacturer immediately, send any search engine links. Show that you're adhering to the policy. make an email address [email protected] cc the email to that address with a directive to your 'webmaster' to remove all the products from the site and deactivate any and all PPC campaigns for the product line. Interested to see what the reply email is. We've done this several times and each time we get an email response from the position above the rep asking us to keep the products on the site. Usually see the prices fixed within 24-48 hours. |
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Rank: Member
Joined: 1/10/2005(UTC) Posts: 714
Thanks: 14 times Was thanked: 1 time(s) in 1 post(s)
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just shot one off... lets see how long it takes...
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Rank: Member
Joined: 12/23/2003(UTC) Posts: 909
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fingers crossed for you. it's been the same response every single time. "Please don't take our products off your site".... well.... do something about it and we won't.
They need us as much as we need them and the amount of behind the scenes BS I've stumbled upon during ridiculous conversations with reps is unbelievable. Just like any other big company out there... I need to speak with your manager.
Something to think about: If you're doing enough volume, talk the manufacturer about private labeling. You can discount to your hearts content. |
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Rank: Member
Joined: 2/21/2007(UTC) Posts: 1,113
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The question I have run into -- and there is only one manufacturer that I have dealt with (don't right now) that has MAP Pricing -- is that I wouldn't buy directly from the manufacturer, but from a distributor. The distributor is saying that they can't sell to stores unless they adhere to the MAP pricing. It seems to me that the manufacturer can decide whether to sell to the distributor or not, but shouldn't be able to dictate what the distributor does with each store. |
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