For manufacturing companies, it is essential to implement a robust POP policy across multiple retail channels. It promotes consistency of the minimum price that retailers can promote a particular product in the category. Not only does this guarantee the manufacturer`s brand identity, but it also prevents the trade from evading fierce price wars. MAP guidelines can help create a level playing field for small businesses that want to introduce specific segments or categories with their own products. Over the years, brands have been preparing to use both online and stationary stores to market their products on several product attributes. Through a POP pricing policy, they would be more interested in taking an omni-channel approach to marketing their products primarily at the store level, rather than relying exclusively on online channels, where price is a more important purchasing factor. When defining a DIRECTIVE on POPs, it is important for sellers to design the directive according to its conditions, guidelines and needs. It is customary for companies to simply use a model on the Internet and use the same criteria as those on which their map policy is based. Such an approach allows producing companies to execute guidelines that, for the sector or scenario in which they operate, are illegal or irrelevant or that affect their brand and market value. On the other hand, developing a map policy that is consistent with your business ensures that manufacturers understand the legal terminology and impact of infringements.
This can contribute to the more effective implementation of POP policies. Unauthorized sellers need a different approach than authorized sellers. If you identify a MAP breach attributed to a seller you don`t recognize, you must first discover the seller`s information and contact them. Find out who they are, why they`re selling your product — even better from where they found it — and let them know about your map policy. The best scenario is that the seller is legitimate, but is not allowed, and you convert them into a member of your dealer network. In the worst case, it is counterfeits or stolen goods, and you must take legal action. These proposals to implement POPs through an «agreement» or «collaboration» with resellers and the use of MAP to enforce product prices can have an intuitive appeal. Indeed, several POP models available online are called «agreements» between the manufacturer and the dealer. But I warn you, these proposals, if implemented, could pose a significant risk in terms of cartels and abuse of dominance, which could expose companies to serious and costly liability.