What is MAP Pricing?
A MAP policy is a policy or condition that dictates the absolute cheapest price a distributor or retailer can advertise a product for outside of the store. These policies usually include incentives for companies to comply with the terms, and equally include repercussions in the event of a violation of the policy.
While distributors can break MAP policies, as this in itself is not illegal, suppliers can penalize them in accordance with the agreed-upon terms or simply terminate contracts. Such penalties can include withholding of orders or contract termination and so on.
Traditionally, manufacturers offered a “Manufacturer’s Suggested Retail Price” (MSRP) or sometimes referred to a Recommended Retail Price (RRP). This system allowed retailers to set prices. A television with an MSRP of $400 could be sold by a retailer at $300, with the retailer advertising this item at 25% discount. However, with a MAP policy, this is not possible.
What this means for you?
Some (not all) of our prices are listed at what that particular manufacturer requires and might be able to be negotiated. We offer a “Make an Offer” button on product pages that allows you to submit an offer less that the posted price. While offers are not always accepted sometimes if there is a MAP policy in place we can accept those offers without taking a loss. Just remember, while compressors and other air equipment is not cheap there are also not the greatest margins as this is a highly competitive industry. So please keep that in mind if you do use our offer feature.