MAP policies come with a few limitations which makes them a bad fit for many manufacturers and brands. If you don’t have cooperative advertising funding for resellers, this sort of policy may affect your business. For example, if your resellers start setting prices that don’t align with the advertised prices, your company’s image might be badly impacted. This is because MAP policies do not allow manufacturers to dictate conditions.
With a MAP, you cannot force your retailers to actually charge exactly as much as they advertise because, according to US law, resale prices are not ad prices. Advertising price is what a customer sees before entering the store’s front door. All the rest – store’s walls, price tags, discounts – are resale prices.
In e-commerce, advertised prices can also be different from what customers actually see in a webstore, but, most often, a price drops during the checkout process when the item is already in the shopping cart.
A UPP gives entrepreneurs peace of mind since it can streamline the process and help them achieve their business goals. Sometimes this approach motivates resellers to stop advertising and focus more on sales.