The Elephant in the Room: MAP
I wanted to write about a topic that’s been a dilemma for me, as I’m sure it has been for many of you. I’m referring to margin pressure, as it pits brick-and-mortar retailers against online resellers. While minimum advertised price (MAP) and other, similar types of price maintenance programs exist in the U.S. and Canada, those programs are unique to their respective countries.
The rest of the world relies on different types of non-formalized protections, such as: intellectual property violations, brand disparagement arguments, controlled distribution and more.
Whether formal or informal, product always seems to find its way to a marketplace, be it through Amazon, eBay or Rakuten, just to name a few. We’re not talking counterfeit goods here (although that’s a problem unto itself), but rather, legitimate brand names that have been sourced either from distributors, retailer “back doors,” or sometimes even from the factories that are manufacturing the products.