Minimum Advertised Pricing (MAP) – What is it?

The pricing of some products that you sell will be strictly controlled by the manufacturer. This is done by setting what is called a Minimum Advertised Price, or MAP. The manufacturer of the product is the one that sets MAP pricing. This pricing structure is then enforced by the distributors of said product.

For example, you want to sell this really cool piece of electronic equipment, but before you can align yourself with a distributor for such an item, you are required to sign an agreement that basically states that you agree to sell it for no less than $179.99. This particular item retails for $199.99, so you are able to offer it for sale at a $20.00 discount.

By signing this agreement, the manufacturer or distributor will allow you to sell the item. If you put the item up for sale at a price less than the MAP of $179.99, you run the risk of jeopardizing your relationship with said manufacturer or distributor and they quite possibly may not allow you to continue selling the item, as you have violated the Minimum Advertised Price agreement.

If you are able to sell your items at MAP on eBay, you will be guaranteed a certain profit margin. However, everyone else selling this same product has to sell at the MAP price as well. Otherwise, they will be undercutting you. Not to mention, they will be in violation of the MAP. (You will find a lot of sellers violating the MAP of a product because competition is steep and they want to move their product. Sometimes, the only way to move the product is to lower the price.)

Why would a manufacturer institute a Minimum Advertised Price? They do this for several reasons:

• They want to ensure that their product maintains a certain level of exclusivity and doesn’t become known as a cheap product.
• They want to protect their dealers and make sure that everyone makes money.
• They want to protect their bricks and mortar stores from “unfair” online competition.

You may be thinking this sounds like a great idea, only selling products that have a MAP associated with them. In a perfect world this would be ideal. However, in an eBay world, it isn’t that simple.

While selling a product with a MAP, you will be constantly fighting other sellers who blatantly disregard any MAP agreement they may, or may not, have signed. In order to protect your profit margins, you will end up having to get the manufacturers and/or distributors involved and hope that they can show these rogue sellers the error in their ways (this can be easier said than done).

The best way to sell a product with a MAP is to be the only seller on eBay with this particular product. This way you don’t have to babysit other sellers and make sure they are playing by the rules. Of course, isn’t the ideal situation to be the only seller on eBay with a certain product?

Now you know what a Minimum Advertised Price (MAP) is and you will be able to make the judgment for yourself if selling a product with a MAP is right for you. We have had varying degrees of success selling products with a MAP but, for the most part, it is a hassle ensuring other sellers adhere to the Minimum Advertised Price. Find yourself the perfect niche product and then it won’t matter if it comes with a MAP agreement. You will own the marketplace and can sell it at whatever price you deem is the right price!

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