Thread: MAP Pricing
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Old 07-24-2013, 05:41 PM
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Default MAP Pricing

I started to reply to a post that somebody had just put up, claiming that a vendor was "ripping it's clients off", and that they would be best suited to purchase their products elsewhere.

I deleted that post as I didn't want to make it sound like I was signalling the OP out, so I decided to post my views on what MAP Pricing is and how we benefit from it.

So here is the thing with MAP Pricing that makes sense that people seem to be overlooking.

If I am a reseller of Brand "X", and I have spent a lot of time and money training my staff how the product works, and spent a lot of money advertising this product, then I should be compensated fairly by getting a decent profit margin on said product.

However Billy Bob who ran his own lemonade stand out on his driveway for the past 10 years decides one morning that he wants to see the same product as me, yet has no experience and no money invested in advertising, in theory can sell for less and make more profit.

Is that fair?

Is that fair to the people who do spend the time training staff, who spend the money in expensive TV, Radio, Internet or Print ads? I think not.

Then what happens to that quality run company that keeps losing money to Billy Bob because of the low prices? Well the good company has to let staff go because he can't afford to pay them, or he has to drop that great new line that he just picked up because Billy Bob is underselling him.

Then Brand "X" one day realizes that most of his resellers are gone and he is left with a group of Billy Bob's who don't know anything about the product and can't service it properly?

Then Brand "X" has to start dealing with all the calls and complaints because there isn't anybody left out there that is qualified to service these products.

Brand "X" can't get the old vendors back because they are either out of business or have moved onto a company that does support the MAP process, and Brand "X" runs the risk of now being considered a poor quality manufacturer rather than a good one when the first started out.

Eventually Brand "X" becomes known as the discount product, can't afford to continue to grow sales because most people to start off shopping for a shit product and Brand "X" goes out of business.

We as consumers are our worst enemies.

We don't want to pay more than a buck for anything, yet complain when that dollar item didn't last 25 years.

I could carry on that whole theme of economics, but it just makes my blood boil.

Lets talk about bunny rabbits instead! LOL......

Warlock where are you?
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