The first thing you should do is leverage MAP pricing monitoring. How do you know that retailers aren’t violating the MAP? To start with, you should set the MAP. Then, consider tracking retailers’ quotes with pricing intelligence, for example, using MAP monitoring software
from Priceva. It automates data collection, scans prices for all your products across different retailers’ stores, and notifies you in case of MAP violation.
Automation of price monitoring is a must in the e-commerce industry, but what to do next when you discover MAP violators? Do not neglect these occasions and take measures immediately!
You can start with sending a retailer a warning and ask to restore the normal price level. Also, brands can withhold product supply for some time or exclude resellers from future promotional deals. Termination of partnership is a rare event and might be used when a retailer has repeatedly violated MAP policies.
As a rule, temporary supply limitations and similar penalties are enough to show that you are serious about your MAP policies and keep retailers in line. In a more disciplined market, retailers are likely to report price violations to suppliers because they don’t want unfair competitors to lure the majority of buyers by offering the lowest cost.