MAP – Price Management

Legal Strategies to Control Retail Price Erosion

Minimum Resale Price (MRP) and Minimum Advertised Price (MAP) Policies are a great way to help prevent the erosion of brand equity due to deep discounting on-line. However they are not the only tool available to brand owners to remedy the problem. In fact, a poorly designed, haphazardly implemented, and inconsistently applied MRP or MAP Policy will not only fail to achieve the desired outcomes, it could very well land an organization in a business and legal quagmire.

MRP and MAP Policies in isolation will not solve a deep discounting problem. They are just one part of the complex mosaic of sound pricing management.

Before determining which method is most appropriate for reducing steep discounting on-line, it’s imperative that the organization evaluate the root causes of the problem.  A solid understanding of the underlying business practices that are driving deep discounting will be the key to developing a comprehensive and lasting solution.  Brandoogle uses a combination of quantitative, and qualitative measures to determine the underlying causes of deep discounting, and then develops metrics to measure the efficacy of solutions.

Sound pricing management policies, whether they include a MRP or MAP Policy, should be guided by qualified legal counsel.  

Gene Zelek of Freeborn & Peters LLP, is a JD/MBA who not only is a senior partner in a Chicago law firm, but also has worked as a brand manager for a Fortune 500 company and its in-house marketing counsel. With over thirty years of experience in pricing management, as well as having authored more than 95 successful pricing policies for companies in diverse industries, Gene has created an excellent primer for understanding the legal issues that surround pricing management in a comprehensive, but easy-to-understand, format.  Please feel free to download this outstanding resource or connect directly with Mr. Zelek.