Have you heard of MAP pricing before? It stands for “Minimum Advertised Price” and is a lousy practice in my opinion that is forced on retailers by certain manufacturers. MAP pricing borders on price fixing (which is highly illegal by the way) – where the manufacturer sets a price and the retailer cannot go lower than that price if they want to remain a dealer for their product.
I’ve dealt with MAP pricing in my prior lifetime in the golf industry, but I’m now being forced to deal with it in the upland hunting industry as well. The way it works is that the manufacturer creates a MAP policy that the retailer has to sign and agree to – stating that I (the retailer) won’t advertise their products below the minimum prices they set. If I do advertise a price on their product below the minimum price they set, they can choose to terminate me as a dealer.
From the manufacturer’s perspective, they say they enforce MAP pricing to “protect their brand” from off-price retailers - specifically Internet retailers/discounters. They also say that they do it to protect their “brick & mortar” retailers (those with physical store locations) who they feel get hurt by Internet retailers. Somebody please call the waaaahhbulance! Being a ‘free market’ supporter, MAP pricing just stinks – for me the retailer, and for you the customer. Yes, I benefit from higher margins, but I would rather pass a good deal along to my customers.
Also, with the manufacturer controlling the price, it puts me in direct competition with them. Take for example Filson, Beretta and Turtleskin - all manufacturers whose products I carry and who enforce MAP pricing (which is why you don’t see any discounts on those brands on my site, and shouldn’t find the products any cheaper on other sites on the Internet). All 3 of these brands also have websites where they also sell direct to consumers. Which creates an interesting relationship - I am a dealer for them and they want me to sell as much of their product as I can, but they also compete directly with me for sales – they’re my competition. The latter part of the relationship drives me nuts.
So how do I compete with my own manufacturers when lower price isn’t an option? Service. I guarantee I’ll take better care of you than the manufacturers. Case in point: an Uplanders Warehouse customer recently purchased some Turtleskin chaps that he wore in the field and determined that he didn’t like. The product can only be returned to the manufacturer if it’s defective and/or in new condition (not used). However, I gladly accepted the used product and exchanged it for another brand of chaps that will work better for him. Granted, I can’t re-sell the used product on my site either, but I’m more interested in creating a happy customer who will come back the next time he needs upland hunting gear. My primary concern is creating a good customer experience.
There is one other way to compete against MAP pricing. CALL ME to place your order. The MAP policies to which I’m bound say I have to “display” or advertise a certain price, but it doesn’t say I can’t “sell” it for less. If you call me on the phone, I’ll cut you a deal ;) -JT
