The world of retail spans a lot of goods, products, and services. This also means that the array of up and coming businesses in different industries and fields continue to grow as the demand for more goods and services increase.
However, even in the hasty world of production and selling, there are hard and fast rules, one which the entire industry, no matter how many players there are, that need to be met.
Booming competition online
This goes true especially now that the consumer world is no longer restricted to just buying and selling. There’s also such a thing as reselling and even bulk buying and selling for those who want to make business outside of the usual stores.
While the quality of the product or even the brand can be the difference for the customer, there are several times when the product price can speak volumes in the competition.
For the most part, product selling involves all kinds of discounts, especially when selling to a retailer or a distributor, Nuvonium reported. As such, sometimes the reselling price is left in the hands of the reseller, and it could go two ways. One is for a standard profit to be made in relation to the discount that was given by the sellers. The second and blurred area in reselling is that some resellers may actually lower their prices even more. The trade is lower profit, but the possibility of being the preferred reseller due to the price. This basically gives the reseller control of the competition.
Leveling the playing field: Minimum Advertised Price
A good way to level this playing field is via the Minimum Advertised Price Policy.
According to the Consumerist, suppliers and resellers agree on one price that would be the lowest for which the item can be advertised. Basically, this is the number that retailers will be allowed to advertise the product, which is why it is not surprising to see similar price tags for the same product for different retailers.
The MAP is the price at which a manufacturer’s products can be advertised. And usually, retailers who go against this can actually be crossing legal lines, especially if they advertise a product below the minimum price determined.
To make sure that your business doesn’t go against any rules, it is best to stay within the legal bounds and adhere to the MAP. Of course, there is such a thing as discounts and promotions that some stores apply. This is even more common for those who are online, as they have fewer costs compared to those with physical stores.
The best thing to do is to make sure that you monitor these retailers who are in the same industry as your business. This way, you still know the trend among sellers, and can see if any discounts or leeway can be made for your business.