While it might benefit me (I am still trying to figure out how) to have MAP prices imposed by the manufacturers, it completely fails any logical test of common sense and business model development.
In my online store, the price I advertise is the only price a new customer knows. To the average consumer, they assume that the advertised price is the price. I someone else advertises another lower price, they will simply choose that other retailer. Most MAP price programs PREVENT the use of coded language that lets a customer know they will actually sell for a lower price than the one advertised. In the scuba industry, every MAP price program I know prohibits "automatic" discounts or prohibits discount codes that lower the price in the shopping cart.
The concept of using MAP prices to level the playing field for all dealers is a concept only loved by the retailers who ALREADY have the largest market share. If a smaller retailer, or a retailer who is trying to grow market share can't advertise the REAL price they are willing to offer, how in the world can the increase market share? How can they balance inventory? How can they expand customer count?
MAP price programs in the scuba industry were originally designed to "protect" the smallest dealers. With the growth of some of the larger brick and mortar and online retailers, it has morphed into a program that simply protects the market share of these stores. I am a dealer just like every other dealer. Now, it is clear that in the scuba industry, I am not one of the large ones. Why is it that the larger scuba online retailers never complain about MAP prices. In fact, just a couple of stores (about5 of them) do 100% of the MAP enforcement for the scuba companies. All I would need to do this morning is lower the price of one item below the MAP price and the phone calls would start coming.
MAP pricing, despite the benefit offered to certain segments of a market, are an overall bad idea. In the long term, MAP pricing hurts everyone.
Phil Ellis
In my online store, the price I advertise is the only price a new customer knows. To the average consumer, they assume that the advertised price is the price. I someone else advertises another lower price, they will simply choose that other retailer. Most MAP price programs PREVENT the use of coded language that lets a customer know they will actually sell for a lower price than the one advertised. In the scuba industry, every MAP price program I know prohibits "automatic" discounts or prohibits discount codes that lower the price in the shopping cart.
The concept of using MAP prices to level the playing field for all dealers is a concept only loved by the retailers who ALREADY have the largest market share. If a smaller retailer, or a retailer who is trying to grow market share can't advertise the REAL price they are willing to offer, how in the world can the increase market share? How can they balance inventory? How can they expand customer count?
MAP price programs in the scuba industry were originally designed to "protect" the smallest dealers. With the growth of some of the larger brick and mortar and online retailers, it has morphed into a program that simply protects the market share of these stores. I am a dealer just like every other dealer. Now, it is clear that in the scuba industry, I am not one of the large ones. Why is it that the larger scuba online retailers never complain about MAP prices. In fact, just a couple of stores (about5 of them) do 100% of the MAP enforcement for the scuba companies. All I would need to do this morning is lower the price of one item below the MAP price and the phone calls would start coming.
MAP pricing, despite the benefit offered to certain segments of a market, are an overall bad idea. In the long term, MAP pricing hurts everyone.
Phil Ellis
