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One Big Reason Brands Should Care About MAP Pricing

TrackStreet

There are many reasons we at TrackStreet believe manufacturers and brands should have a MAP pricing policy. For example, MAP pricing protects your all-important brick-and-mortar retailers from being repeatedly undersold by their pure-eCommerce competitors. This can present a long-term threat to your brand.

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Pricing Erosion: Definition, Causes, and How to Avoid It

TrackStreet

In a competitive industry for a specific type of product or service, businesses often engage in pricing wars that lead to a steady decrease in the value of goods. This, in turn, can impede investment in innovation, research and development, and other critical areas that contribute to the long-term growth of a brand.

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What is a MAP Policy and Why It’s Important for Brands (+ FAQs)

TrackStreet

While this is a win for consumers, such a business practice can encourage price wars and set a precedent for market monopolies, brand equity erosion, and product devaluation. To prevent these problems from happening and protect the interests of all parties, governments allow the setting of pricing policies under Fair Trade Laws.