MSRP vs. MAP – What is the Difference?

Manufacturer’s Suggested Retail Price, or “MSRP”

The price a product should be sold for, recommended by the manufacturer.

The price is supposed to reflect all the costs that happened during the manufacturing process, including retailer markup. MSRP is not necessarily the price that retailers use or that consumers pay for. Some retailers sell below MSRP to reasonably reduce their inventory.

 

Minimum Advertised Price, or “MAP”

The lowest price a reseller can advertise a partner’s products.

It is a way to protect brand image, and it levels the playing field between online sellers and brick and mortar stores. A MAP policy can reduce consumers going to a brick and mortar store to find a product but ultimately purchase the product online – a practice known as “showrooming.”

 

Maintaining a MAP policy is a great way for companies to maintain their brand integrity online. If you are interested in learning more about the prices your products are being sold at, get started with a free trial with Perispect today! Contact .