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A:
MAP stands for 'Minimum Advertised Price', and fits alongside SRP
'Suggested Retail Price' or RRP 'Recommended Retail Price'. It is
quite often the case that the SRP is much higher than the manufacturer
realistically expects the item to sell for. The reason is to allow
retailers to undercut the SRP, make it appear to customers they
have a bargain in their advertised prices, but still be able to
make a profit on the sale. In the US a fixed retail price for an
item is illegal, because it runs counter to a free economy. And
while manufacturer's may try to enforce a SRP and MAP for products,
they could still be running fowl of the law. A law of 'within reason'
for MAP's, appears to be the middle ground in US trade laws. It's
a gray area, where strict enforcement of a MAP, against market forces,
may infringe upon US laws, but a lax MAP may be acceptable. If you
are selling a manufacturer's products online, and you do undercut
their MAP, then it's within reason to expect a phone call from them.
If the products are generating profit, it's probably wiser to stick
to a MAP and let the undercutter's wipe out their profit and go
under. One option to deal with a frustrating MAP policy is to offer
free shipping or an additional gift. You are also within your right
to report a violator of a MAP policy to the manufacturer. Many critics
believe a MAP to be nothing short of price fixing, and unfair due
to manufacturer's selling their product at different rates to different
distributors.
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