The artificial intelligence is increasing with each passing day. Advanced programming knowledge and technology has made it easy for companies to utilize the AI in numerous ways. There are several software giants that are working to make it easier for the companies to monitor their products and performance in various ways. Especially, with the increasing number of shops and ever growing ecommerce industry, things have become pretty competitive. Therefore, it is important for companies to utilize the technologies to monitor their business.
The AI software help a company in increasing its performance. It allows you to know about the loop holes and you can tweak your company in such a way that you get more sales. Moreover, you can monitor the actions of your resellers and affiliate network too. One of the many software that are being used in the modern era by businesses is MAP. It refers to the minimum advertised price which is about monitoring the lowest price for which your product is being sold in the market.
What is MAP?
MAP refers to the Minimum Advertised Price. It is the least amount for which a reseller can sell your items. For instance, you are a company that sells backpack and there is a model that has to be sold at $150. Once you list the MAP, the resellers should respect it and must advertise the product for $150 or more. Do note that the individual can advertise the product for more than the given price but not less.
On the other side, in case that a reseller gives discount to its customers and sell the product for $100 at a discounted rate, this would be a breach of agreement. Even on the discounts you cannot sell an item for less then what you have agreed as the MAP.
What are the benefits of MAP?
There are a number of benefits associated to MAP enforcement. First of all, you get a fair competition among your distribution channels. No matter where your product is being sold and who is selling it, regardless of who is the buyer and from where he is buying your product, there is a specified minimum price that one has to pay for the item. So, this leads to a fair competition as everyone has to uphold the agreement and no one can simply come up with a discount to lower the price.
Secondly, and perhaps most importantly, it allows you to maintain your brand identity and value. Imagine a product of your brand priced at $200 on your website. The same product is advertised by one of your resellers for $180. Someone comes up with 25% discount and advertises the product for $150. This can harm the image and value of your brand. So, to maintain a uniformity, one should implement MAP.
Moreover, you give an even chance to smaller resellers for competing with larger sellers. Usually, larger retailers come with discounts and bundle offers that smaller businesses cannot compete with. Therefore, a uniform price would mean that the smaller and larger businesses won’t be able to lure the customers by the difference of pricing. They have to work on their marketing strategies.
Also, this helps in preventing the underpricing of the product as well as protection of seller margins. You would see certain sellers cutting down on their margins to provide their clients some products at a lower price point. This increases the sales for the reseller. However, it might lead to underpricing of your product and would also harm seller margin.
How to stop MAP violators?
Unfortunately, many businesses fail to keep up with the MAP because of issues they face in tracking down the resellers and their price. However, with the modern day MAP enforcement software, things have become very easy for you. These programs allow you to keep your affiliate network at one place. You can monitor their activities and see at what price your products are being sold. In case if any of your product is underpriced, you will be notified immediately and you can take actions accordingly. So, tracking the network and identifying violations become a very simple process. In fact, it all gets automated for you.