***Understanding MAP Pricing*** Everyone here should read this!!!

[ezman604]

I'm familiar with the term MAP Pricing. I've heard it a lot. But I guess I never really understood it. I understand the reasoning behind it though. It's a way a manufacturer can keep a level playing field between ALL of its distributors.

M (minimum)
A (advertised)
P (pricing)

Now...here is the thing. A lot of manufacturers require a dealer to use MAP. BUT, as the acronym states, this is ADVERTISED pricing. Any dealer has the right to sell a product at ANY price, even including at a loss if they wish. So, any dealer/vendor has the opportunity and right to offer special UNADVERTISED discounts. Such as a GTA member discount. Or a one time special discount only available IF YOU CALL an order in.
Can you see where I'm going with this?
Recently there have been vendors offer a discount or special pricing. Some offer to BEAT any advertised price, sorta like Lowe's and other businesses do. Not just to match prices, but to BEAT the advertised price. And folks, all you have to do is CALL.
So, some have offered discounts or let it be known they can beat any price yet they are chastised for not publishing these prices. That's not how it works. And up until this morning, I was not fully aware how MAP pricing worked.
Let's take the time and effort to save money, how about it. Just make a phone call and compare an advertised price when a vendor says they can meet or beat a price. And if you're looking at an airgun or related equipment, compare prices then call any vendor to see if they can beat the advertised price. Don't be surprised when a few minutes and a phone call saves you a LOT of money as well as establishes a human connection in case you need service in the future!!!
Maybe this helped some understand MAP and how to handle it. Now, go take advantage of those excellent discounts and price beating guarantees we have at our disposal!!!
And as always....
SAFE & Happy Shooting!!!!
Dave
 

[Bicycleman]

Here is another acronym that has been added to the list.  I did know about this but had not seen it in a long while.  Thanks you GTA Vendors for bringing this MAP back.

[Joe Brancato]

Thank you so very much for clearing this up Dave.

[Bicycleman]

Joe, I am in the process of adding MAP (along with its definition) to the "Abbreviations/Acronyms” thread Abbreviations / Acronyms that many on the GTA Forum read.  Thank you for your contribution to that thread and the Forum.

[Joe Brancato]

Joe, I am in the process of adding MAP (along with its definition) to the "Abbreviations/Acronyms” thread Abbreviations / Acronyms that many on the GTA Forum read.  Thank you for your contribution to that thread and the Forum.

Don't thank me, Thank Dave (EZ).  Dave took the time to explain it to the forum, hence this forum will continue to get special pricing. 

I can now offer guaranteed best pricing on any airgun and/or accessory.  (Simple as that).

If one wants to see our prices, they can go to our websites below. If they see a better a similar price somewhere else (because we must list at MAP), then CALL and we can talk.
http://experthpa.com/cart/cart.php
or
http://www.topgun-airguns.com/

You guys can't imagine the deals on scopes, rifles, etc. I am willing to put together.

[mobilemail]

I have seen this before.  Anytime you look at an internet or printed ad where the items are marked "call for price", it's because the dealer could lose a product line if they don't "toe the line" on the advertised pricing.  It's like the manufacturers are trying to implement their own version of price fixing.

Joe - thanks for your support of the GTA forum.  I hope our wives never find out how much money we are "saving". 

[TF89]

Mark, you are a man of wisdom.

[wolverine]

thanks for the explanation.

we have all seen ads that read..."prices too low to show" or "call for best price"

this always aggravated me as i thought it was just a way for a salesperson to push a product on a potential customer,  but now know the reason behind it. 

many thanks!

[Sfttailrdr46]

I have seen this before.  Anytime you look at an internet or printed ad where the items are marked "call for price", it's because the dealer could lose a product line if they don't "toe the line" on the advertised pricing.  It's like the manufacturers are trying to implement their own version of price fixing.

Joe - thanks for your support of the GTA forum.  I hope our wives never find out how much money we are "saving". 

Yes I know that I will never hear the end of it 

[Brian10956]

Sometimes I wish our meddlesome government would make MAP pricing against the law. I believe a business should have the right to sell and advertise at any price they choose. I have found that some vendors figure a way around this especially in package deals. When I purchased my first apple computer everyone was the exact same price. I did find one vendor who only charged me $50 for the $350 printer I purchased with it so for now that's one way to get around the MAP pricing. I recommend calling at the end of the month when the next rent bill is coming up for a vendor, talk to the owner or manager as see if you can work up a combo deal. Remember vendors need to make a living but if a fair deal for both sides can be made do it.

[TwiceHorn]

Sometimes I wish our meddlesome government would make MAP pricing against the law. I believe a business should have the right to sell and advertise at any price they choose. I have found that some vendors figure a way around this especially in package deals. When I purchased my first apple computer everyone was the exact same price. I did find one vendor who only charged me $50 for the $350 printer I purchased with it so for now that's one way to get around the MAP pricing. I recommend calling at the end of the month when the next rent bill is coming up for a vendor, talk to the owner or manager as see if you can work up a combo deal. Remember vendors need to make a living but if a fair deal for both sides can be made do it.

Well, it is close to illegal.  For a while there, manufacturers used to require minimum (or even sometimes maximum) prices as a condition of distributorship.  That practice, known as resale price maintenance, was a "per se" antitrust violation from 1911 to 2007, when the Dr. Miles case was overturned.  Now, such price maintenance conditions are subject to the rule of reason, meaning someone who does it can offer business justifications for doing it that may excuse the behavior.  Because MAP doesn't set an absolute minimum price, that is, the dealer can charge what they want but can't advertise the low prices, it is almost inevitably justifiable.

[avator]

Isn't this what Harbor Freight is in trouble over?

[Zoey]

The small business in which I work part-time is subject to MAP pricing. To further this conversation, I would like to add this:

Dealer pricing is often tied to the number of units purchased from the manufacturer. The more units my business  purchase, the lower the price to me. This is also often co-mingled with MAP pricing. If I purchase only a few units a year, my MAP price may be higher as dictated by the manufacturer. Conversely, the opposite may be true if I purchase in larger volumes.

One of our vendors has a 5-tier system; each with different pricing and MAP's based upon the volume purchased annually.

A few of our local business competitors have got themselves in trouble with manufacturers after they found out they were selling items below MAP. The manufacturers will no longer sell their items to those businesses.

[Airspace]

On a number of retail sites you will see that the price will show up after you place your item in your cart. MAP is the reason behind that.

[SILENT SQUIRREL]

Thanks for getting this thread rolling, Dave
Further thanks to all who have added detail.
FWIW,I just learned a great deal
Ed

[customcutter]

Thanks for an informative thread.  I figured this was going on with Big Box stores and large ticket items.  Never thought about it applying to small vendors as well.

[A moron]

It's jus as MSRP. It is the value of the vehicle that its maker feels represents the vehicle's worth.

We think ots worth $50,000 in yruth its worth 6000$, fully loaded and a 20% profit margin....lol.

So map is for stoer good as  just msrp at a car lot.....lol


Just to add notch ce that big sale or closeout and that $500 otem is now $180?  And thye still mak profit . Nothing sells at a loss new.