It’s inevitable… a customer is selling your product on Amazon (or elsewhere) at a discount price. How dare they?! Don’t they know that drives the value down for your product? What do you do about it? In these scenarios, it’s good to have a MAP policy in place.
We have to ask a customer to fix a price almost every month and no one has ever pushed back. Seriously! I don’t know if they just want to see if they can get away with it or they don’t think discounting is a big deal. But don’t be scared to ask. This is our email script:
It has come to my attention that are selling [product name] below MSRP. This violates our MAP policy which you agreed to when you opened your wholesale account with Po Campo.
Please correct the price to [MSRP] on Amazon and everywhere else that you are selling the bag.
What is a MAP Policy?
You can’t dictate the price at which your customers can sell your product –this is usually considered price fixing, which is illegal. Instead, you have a “Minimum Advertised Price” policy, where the price shown on a website is considered its advertised price (until the product is in a shopping cart, in which case it is the actual price). It’s good practice to have your wholesale customers sign, or at least acknowledge, your MAP policy when they open an account with you.
Creating a MAP Policy
If you’re looking for a template for a MAP Policy, I invite you to look at Po Campo’s version. We’ve had this in place for many years and it seems to do its job effectively. I modeled this off of MAP policies that I got my hands on from other, larger brands.
(Incidentally, modeling things off of larger brands is one of my favorite shortcuts, as I assume that they had lawyers review everything first so I don’t have to).