Article: Marketplace realities demand new approach to map policies: with fixed costs the same on all merchandise, a sliding pricing scale makes sense.(GUEST EDITORIAL)

Minimum Advertised Price (MAP) policies arose as a way to simultaneously address the needs of both suppliers and their retailers. For retailers, by limiting the level of advertised discounts, MAP was intended to stave off the kind of race-to-the-bottom price wars that devastate profitability. For suppliers, MAP guidelines were supposed to give retailers the kind of financial incentive to heavily stock and service a given product line. After all, large in-store displays are still the single most important element in a brand building-strategy. In theory MAP makes perfect sense: By setting a limit on advertised price you can satisfy the needs of retailers and suppliers, ...

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